With the price of fuel rising, employees and businesses will welcome new changes to the fuel advisory rates. From 1 September 2018, for some vehicles, the rates have slightly increased on the previous quarter.
Advisory fuel rates from 1 September 2018 apply as follows:
|Engine size||Petrol – amount per mile||LPG – amount per mile|
|1400cc or less||12p (11p)||7p (7p)|
|1401cc to 2000cc||15p (14p)||9p (9p)|
|Over 2000cc||22p (22p)||13p (14p)|
|Engine size||Diesel – amount per mile|
|1600cc or less||10p (10p)|
|1601cc to 2000cc||12p (11p)|
|Over 2000cc||13p (13p)|
Previous rates in brackets. These can be used for up to one month from the date the new rates apply (Hybrid cards are treated as either petrol or diesel cars for this purpose).
Advisory fuel rates apply when:
- reimbursing employees for business travel in their company cars; or
- requiring employees to repay the cost of fuel used for private travel.
HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.