Advisory fuel rates updated

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

 9p

 8p

1601cc to 2000cc

14p

11p

 8p

Over 2000cc

22p

13p

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.