New advisory fuel rates published

Source: HM Revenue & Customs | | 27/02/2018

Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel.

HMRC accepts there is no taxable profit and no Class 1A National Insurance on reimbursed travel expenses where employers pay a rate per mile for business travel no higher than the published advisory fuel rates.

Employees can also use the advisory fuel rates to repay the cost of fuel used for private travel. In this case, HMRC will accept there’s no fuel benefit charge. The advisory rates are not binding if you the employer can demonstrate that employees cover the full cost of private fuel by repaying at a lower rate per mile.

The latest advisory fuel rates became effective on 1 March 2018. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. You can use the previous rates for up to 1 month from the date the new rates apply.

The rates are as follows:

Engine size     Petrol – amount per mile     LPG – amount per mile
1400cc or less 11p 7p
1401cc to 2000cc 14p 8p
Over 2000cc 22p 13p

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

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

Accountancy service

“Are you feeling confused about how to comply with HMRC’s accountancy requirements?


Your business

Your business

Are you a Start-up business? Are you a little confused about the different types of companies? 


Virtual Director

Virtual Director

Are you looking to grow your business? A Virtual Financial Director can help you take your business to the next level.




Ensure that your business has the edge over your competitors and incorporate Xero into your business, today!


Latest News

Ken Dodd has the last laugh
21/03/2018 - More...
The recent death of the comedian, Sir Ken Dodd, aged 90, would not usually be

Self-catering and holiday let business rates
21/03/2018 - More...
One important aspect of a self-catering or holiday let business that should not

HMRC tackling online VAT fraud
21/03/2018 - More...
Under new rules that came into force on 15 March 2018, HMRC has enhanced powers

Search News


With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login