Advisory Fuel Rates

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HMRC have released new advisory fuel rates to apply from 1 June 2010. The rates apply where employers –

1. reimburse employees for business travel in their company cars;


2. require employees to repay the cost of fuel used for private travel in those company cars.

Engine SizePetrolDieselLPG
1400cc or less12p11p8p
1401cc to 2000cc15p11p10p
Over 2000cc21p16p14p

The above does not affect the 40p/25p mileage rates which can be paid tax free to employees using their own vehicles for business mileage.