New advisory fuel rates

In HMRC’s update on advisory fuel rates on 1 September three of the petrol and diesel rates reduced by 1p, but the 1401cc to 2000cc liquefied petroleum gas (LPG) rate was increased by 1p.

The current rates per mile are:

Engine size

Petrol

Diesel

LPG

1,400cc or less

12p

10p

8p

1,401cc to 1,600cc

14p

10p

10p

1,601cc to 2,000cc

14p

11p

10p

Over 2,000cc

21p

14p

14p


The advisory electricity rate for fully electric cars remains at 4p a mile. Hybrid cars are treated as either petrol or diesel models, depending on the fuel they use. Any amounts paid above HMRC’s rates will give rise to tax liabilities. However, you can use your own rates if, for example, your cars are more fuel efficient or if the cost of business travel is higher than the advisory rates. HMRC will review the rates again from 1 December, although the current rates can be used for a further month.