Advisory fuel rates for company cars

New company car advisory fuel rates have been published which take effect from 1 March 2018. The guidance states: ‘You can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 March 2018 are:

Engine size Petrol
1400cc or less 11p
1401cc – 2000cc 14p
Over 2000cc 22p

Engine size LPG
1400cc or less 7p
1401cc – 2000cc 8p
Over 2000cc 13p

Engine size Diesel
1600cc or less 9p
1601cc – 2000cc 11p
Over 2000cc 13p

HMRC guidance states that the rates only apply when you either:
• reimburse employees for business travel in their company cars or
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

Source: GOV.UK AFR

For information or advice, get in touch with one of our EQ tax specialists today via taxation@eqaccountants.co.uk or call your local office contact