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HMRC’s latest advisory fuel rates offer mixed news, with both increases and reductions.
Rates per mile from 1 March 2018 are:
Engine size
Petrol
Diesel
LPG
1400cc or less
11p
9p
7p
1401cc to 1600cc
14p
8p
1601cc to 2000cc
Over 2000cc
22p
13p
Hybrids are treated as either petrol or diesel.
HMRC’s rates can be used for reimbursing employees for business mileage in company cars, and their use avoids any tax implications for the employees. You can always pay lower rates, for instance for more fuel-efficient cars, but higher rates will need to be substantiated. The advisory rates can also be used to reimburse employees’ private travel.
The next review is 1 June 2018, although current rates can be used until 30 June 2018.
This newsletter is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The newsletter represents our understanding of law and HM Revenue & Customs practice as at 13 April 2018.
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