Revised Advisory Fuel Rates from 1 December 2017

Company Owned Vehicles

HM Revenue and Customs have announced revised tax free advisory fuel rates from  1 December 2017 which may be paid for business journeys in a car owned by the business.   Rates for the previous quarter are shown in brackets.

Engine size Petrol Diesel LPG
1,400 cc or less 11p (11p)   7p (7p)
1,600 cc or less   9p (9p)  
1,401 cc to 2,000 cc 14p (13p)   9p (8p)
1,601 cc to 2,000 cc   11p (11p)  
Over 2,000 cc 21p (21p) 13p  (12p) 14p (13p)

Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for up to 1 month from the date the new rates apply.

These rates may be used in the following circumstances:-

  1. Where employers reimburse for business travel in company cars.
  2. Where employers provide fuel for company cars but employees are required to reimburse the cost of fuel for private use.

Input VAT claims on mileage paid for company cars or employee owned vehicles 

HM Revenue & Customs will accept the above figures for claiming input VAT on fuel for company cars, provided a VAT receipt is available to cover the cost of the fuel.  They will also accept use of the above rates by the employer when calculating input VAT on the fuel element for employees using their own vehicles and claiming mileage under the tax free approved mileage rates for business travel of 45p for the first 10,000 miles and 25p thereafter.

If you have any queries regarding the above or require any further information please do not hesitate to contact us.

ADVISORY TAX FREE FUEL RATES FROM 1 DECEMBER 2015

COMPANY OWNED VEHICLES

HM Revenue and Customs have announced revised tax free advisory fuel rates from 1 December, 2015 which may be paid for business journeys in a car owned by the business. Rates for the previous quarter are shown in brackets.

Engine size Petrol Diesel LPG
1,400 cc or less 11 p (11p) 7p (7p)
1,600 cc or less 9p (9p)
1,401 cc to 2,000 cc 13 p (14p) 9p (9p)
1,601 cc to 2,000 cc 11p (11p)
Over 2,000 cc 20p (21p) 13p (13p) 13p (14p)

These rates may be used in the following circumstances:-

  1. Where employers reimburse for business travel in company cars.
  2. Where employers provide fuel for company cars but employees are required to reimburse the cost of fuel for private use.

INPUT VAT CLAIMS ON MILEAGE PAID FOR COMPANY CARS OR EMPLOYEE OWNED VEHICLES

HM Revenue & Customs will accept the above figures for claiming input VAT on fuel for company cars, provided a VAT receipt is available to cover the cost of the fuel. They will also accept use of the above rates by the employer when calculating input VAT on the fuel element for employees using their own vehicles and claiming mileage under the tax free approved mileage rates for business travel of 45p for the first 10,000 miles and 25p thereafter.

If you have any queries regarding the above or require any further information please  contact us.