Advisory fuel rates


Written by Ray Coman

Engine size Petrol - amount per mile  LPG - amount per mile
1,400 cc or less 11 pence 7 pence
1401cc to“ 2,000 cc      14 pence 8 pence
Over 2,000 cc 22 pence 13 pence
Engine Size    
1600cc or less 9 pence
1601cc to 2,000 cc 11 pence  
Over“ 2,000 cc 13 pence  


If a car is made available to an employee, then they would receive a benefit. The use of a company car would result in taxable earnings for the employee, and a Class 1A national insurance liability for the employer. Where fuel in the company car is also paid for a further benefit would have arisen. As a consequence, a company car perk can result in a heavy tax liability.


On the basis that the employee reimburses their employer at the above rate for private mileage, then HMRC will accept that they have not received any private fuel benefit.


In a separate scenario, provided the employer does not reimburse an employee for business travel at any rate higher than the above, then HMRC would accept that no benefit had been provided for fuel costs.


Rates are updated twice yearly on 1 January and 1 July.

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