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Advisory fuel rates for company cars - New rates apply from 1 August 2007
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HMRC's advisory fuel rates are used by employers to negotiate dispensations for mileage payments for business travel in company cars. The rates only apply where employers:
- reimburse employees for business travel in their company cars, or
- require employees to repay the cost of fuel used for private travel.
The rates are based on the fuel cost per mile for the most popular fleet cars. They were introduced from January 2002 and were last adjusted in February 2007.
As a result of the recent general increases in car fuel prices, HMRC has reviewed the advisory fuel rates again and the changes from 1 August 2007 are shown in the following table:
Engine Size
Petrol (pence per mile)
Diesel (pence per mile)
LPG (pence per mile)
to 31/7/07
from 1/8/07
to 31/7/07
from 1/8/07
to 31/7/07
from 1/8/07
| 1400cc or less
| 9p
10p
9p
10p
6p
6p
| 1401cc to 2000cc
| 11p
13p
9p
10p
7p
8p
| Over 2000cc
| 16p
18p
12p
13p
10p
| 10p
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
HMRC documents the way in which the rates are calculated. They are based on average miles per gallon for the different engine sizes, reduced by 10% to give more realistic fuel consumption figures. The fuel prices used are
- petrol - 96.6 p per litre (439.2p per gallon)
- diesel - 97.2p per litre (441.9p per gallon)
- LPG - 46.2 p per litre (210.0p per gallon).
...UK Payroll News - Latest
Further information:
Company Cars - Advisory Fuel Rates for Company Cars
Company Cars - Advisory Fuel Rates for Company Cars from 1 August 2007
Company Cars - Advisory Fuel Rates for Company Cars - earlier rates
The UK Payroll News is sponsored by HRD & Payroll Solutions
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