Reminder: Company car fuel rates revised by HMRC

from our UK office

If your expense system covers employees who use company vehicles then you need to know about this update. It’s the latest change to the Advisory Fuel Rates (AFR) which are reviewed every quarter in the UK by HM Revenue and Customs (HMRC).

There has only been one change in this latest revision with the rates for engine vehicles over 2000cc increased by one penny for both petrol and LPG. You can find all of the latest rates below:

Advisory Fuel Rates from March 1, 2017

Engine size                 Petrol                        LPG

1400cc or less              11p                              7p

1401cc to 2000cc         14p                              9p

Over 2000cc                 22p                             14p

Engine size                 Diesel

1600cc or less               9p

1601cc to 2000cc         11p

Over 2000cc                 13p

These rates apply from March 1st, 2017 but HMRC provide some ‘wiggle’ room, allowing the previous rates to be used for a period of one month following the changeover.

The AFR rates only apply to those companies which reimburse employees for business travel in company vehicles, with employees having to repay any fuel costs for private travel.

For employees who use their own private vehicles for business travel, they are covered by Mileage Allowance Payments (MAPs). You can find more information, here.

Webexpenses provides a smarter way to manage and monitor employee expenses and business travel. Find out more, here.