Advisory fuel rate changes
HMRC has announced changes to the advisory fuel rates for company cars. The new rates should be used for all journeys taken from 1 January 2009. The new advisory fuel rates are noted below with the old figures in brackets:
Engine size |
Petrol |
Diesel |
LPG |
1400cc or less |
10p (12p) |
11p (13p) |
7p (7p) |
1401cc to 2000cc |
12p (15p) |
11p (13p) |
9p (9p) |
Over 2000cc |
17p (21p) |
14p (17p) |
12p (13p) |
Petrol hybrid cars are treated as petrol cars for this purpose.
HMRC have confirmed that the new rates can be used immediately if employers are able and wish to do so. The figures are also acceptable for VAT purposes although VAT receipts are also required.
The advisory fuel rates are not statutory, they are only advisory. Employers can use different rates if they can show the cost of fuel used in their company vehicles is higher, either because the average cost of fuel is higher, or the vehicles are less fuel efficient. If a rate other than the advisory fuel rate is used the business should keep records to show how the average fuel cost per mile for the company cars was calculated.