Change to Advisory Fuel Rates from 1 September 2013

HMRC has published the advisory fuel rates to be used from 1 September 2013.  

Advisory fuel rates are HMRC-approved rates which apply where employers reimburse employees for business travel in their company cars, and where employees reimburse the cost of fuel used for private travel in a company car. Using the advisory rates will mean that there is no fuel benefit charge. HMRC will also accept the figures in the table for VAT purposes, though employers will need to retain receipts. 

The new rates per mile are: 

Engine size

Petrol

LPG

1400cc or less

15p

10p

1401cc to 2000cc

18p

11p

Over 2000cc

26p

16p

 

Engine size

Diesel

1600cc or less

12p

1601cc to 2000cc

15p

Over 2000cc

18p

 The changes are: 

  • For petrol cars, the rate has gone up from 17p to 18p for cars in the 1401–2000cc category, and from 25p to 26p for cars over 2000cc.
  • Conversely, for LPG cars the rates have gone down to 11p and 16p for cars in the 1401–2000cc and over 2000cc categories respectively.
  • The rate has gone up from 14p to 15p for diesel cars in the 1601–2000cc category.

The new rates apply to all journeys on or after 1 September 2013 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

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