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Advisory Fuel Rates Change 

The rates that apply to fuel cost for company cars have changed as of 1 September 2015.

The new advisory fuel rates will only apply when:

  • a company reimburses employees for business travel using their company car
  • the employee themselves is required to repay the cost of fuel for private travel.

The new rates apply from 1 September 2015. The previous rates can be used for 1 month:

Engine sizePetrol – amount per mileLPG – amount per mile 
1400cc or smaller11p7p
1401cc to 2000cc14p9p
Over 2000cc21p14p

For diesel cars, the rates are:

Engine sizeDiesel – amount per mile
1600cc or less9p
1601cc to 2000cc11p
Over 2000cc13p

Benefits in kind statistics released by HMRC show that for 2013/14 car benefit and car fuel benefit made up 60% of the total taxable value of all benefits in kind. HMRC attributes this to a higher average tax liability for these benefits. The second biggest chunk of the total is private medical and dental benefit, which is 23%.

The statistics also show that tax was paid on a total of 940,000 company cars in 2013/14

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