Advisory fuel rates change

The rates that apply to fuel cost for company cars have changed as of 1 September 2015.

The new advisory fuel rates will only apply when:

  • a company reimburses employees for business travel using their company car
  • the employee themselves is required to repay the cost of fuel for private travel.

The new rates apply from 1 September 2015. The previous rates can be used for 1 month:

Engine size Petrol - amount per mile LPG - amount per mile 
1400cc or smaller 11p 7p
1401cc to 2000cc 14p 9p
Over 2000cc 21p 14p

For diesel cars, the rates are:

Engine size Diesel - amount per mile
1600cc or less 9p
1601cc to 2000cc 11p
Over 2000cc 13p

Benefits in kind statistics released by HMRC show that for 2013/14 car benefit and car fuel benefit made up 60% of the total taxable value of all benefits in kind. HMRC attributes this to a higher average tax liability for these benefits. The second biggest chunk of the total is private medical and dental benefit, which is 23%.

The statistics also show that tax was paid on a total of 940,000 company cars in 2013/14.

Get in touch today to discuss benefits in kind.