Company car advisory fuel rates from 1 December 2016

HMRC has announced new advisory fuel rates that can be used by employers paying employees a business mileage when driving an employer provided car. These rates can also be used when charging employees for fuel provided for private miles and ordinary commuting.

These rates apply to all journeys on or after 1 December 2016 until further notice. 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

11p (previously 11p)

7p (previously 7p)

1401cc to 2000cc

13p (previously 13p)

9p (previously 9p)

Over 2000cc

21p (previously 20p)

13p (previously 13p)

Engine size

Diesel

1600cc or less

9p (previously 9p)

1601cc to 2000cc

11p (previously 11p)

Over 2000cc

13p (previously 13p)

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Last updated 30 November 2016