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Advisory fuel rates for company cars

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New advisory fuel rates took effect from 1 June 2013. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. Due to the increased review time, HMRC's previous policy whereby the rate could change if fuel prices fluctuated by 5% or more has been withdrawn.

The rates below apply from 1 June 2013. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Engine size Petrol LPG
1400cc or less 15p 10p
1401cc to 2000cc 17p 12p
Over 2000cc 25p 18p

Engine size Diesel
1600cc or less 12p
1601cc to 2000cc 14p
Over 2000cc 18p

Employers should note that under the normal rules, employees are only able to avoid the car fuel benefit charge if the amount they repay in respect of private fuel at least equals the amounts based on the published rates.

Petrol hybrid cars are treated as petrol cars for this purpose. The figures can also be used for VAT purposes although businesses also need to retain fuel receipts.

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Tagged in: Fuel Tax