Advisory fuel rates for company cars

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Tax Posted on September 05, 2017

New company car advisory fuel rates have been published which took effect from 1 September 2017. The guidance states: ‘You can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 September 2017 are:

Engine size

Petrol

1400cc or less

11p

1401cc - 2000cc

13p

Over 2000cc

21p

Engine size

LPG

1400cc or less

7p

1401cc - 2000cc

8p

Over 2000cc

13p

Engine size

Diesel

1600cc or less

9p

1601cc - 2000cc

11p

Over 2000cc

12p

The guidance states that the rates only apply when you either:

  • Reimburse employees for business travel in their company cars
  • Require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

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