HMRC Advisory Fuel Rates

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HMRC Increases Advisory Fuel Rates For Some Petrol Cars But Cuts LPG Rates

HM Revenue and Customs (HMRC) has increased its mileage rates for petrol engined cars over 2.0 litres but cut them for LPG-powered cars in three changes to its Advisory Fuel Rates effective from March 1st.

Pump prices have again edged upwards due to the rising price of oil on the world markets, before plateauing in recent weeks.

The new rates have come from the HMRC’s quarterly review and are effective for the three months from March1st.

Under the new rates, those for petrol engined cars increase by 1p per mile to 22p for all cars of over 2000cc. Those cars of 1400cc or less remain unchanged at 11p per mile and those of 1401cc-2000cc also stay the same at 14p per mile

Meanwhile, the rates for all categories of diesel-powered company cars remain unchanged with cars of 1600cc or less staying at 9p per mile, cars of 1601-2000cc remaining at 11 per mile, and those of over 2000cc at 13p.

However, the rates for some LPG powered company cars are reduced, with those with engines of 1401-2000cc falling to 8p per mile and those with engines of 2000cc and above falling to 13p per mile.

The increases are relevant as the company car advisory fuel rates are used by organisations to reimburse drivers for fuel used in incurring business, rather than private mileage. Companies can use the old rates for up to one month from the date the new rates apply.

The company car mileage reimbursement rates are based on current petrol and diesel prices from the Department for Energy and Climate Change, with the LPG taken from the UK average price from the AA website in the previous month.

The new rates are as follows, and are effective from March 1:

Engine size Petrol LPG
1400cc or less 11p 7p
1401cc to 2000cc 14p 8p
Over 2000cc 22p 13p
Engine size Diesel
1600cc or less 9p
1601cc to 2000cc 11p
Over 2000cc 13p

 

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

The previous rates, valid from December 1, which can be used for another month from the date the new rates apply, were:

Engine size Petrol LPG
1400cc or less 11p 7p
1401cc to 2000cc 14p 9p
Over 2000cc 21p 14p
Engine size Diesel
1600cc or less 9p
1601cc to 2000cc 11p
Over 2000cc 13p

 

By |February 23rd, 2018|Categories: Driving, Fleet|Comments Off on HMRC Advisory Fuel Rates