The latest advisory fuel rates became effective on 1 September 2017. 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 | 13p | 8p |
| Over 2000cc | 21p | 13p |
| Engine size | Diesel – amount per mile |
| 1600cc or smaller | 9p |
| 1601cc to 2000cc | 11p |
| Over 2000cc | 12p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
Planning notes:
It is possible to use these rates and apply them to private mileage if employers pay for their employees’ private fuel costs. Employees can then reimburse employers (recorded private mileage x the appropriate rate per mile). In this way the employer will not have to pay Class 1A NICs on the cash benefit of providing the fuel, and the employee will not be taxed on the benefit. In many, but not all cases, this reimbursement will result in overall cash savings for both parties. To be certain, it is wise to make the relevant calculations and we can help.
