Company car advisory fuel rates updated

HM Revenue & Customs has amended the advisory fuel rates for company cars with effect from 1 September 2012.

The rates – HMRC’s guidelines for fuel mileage rates for company cars – apply to all journeys made on or after 1 September, 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. Petrol hybrid cars are treated as petrol cars for this purpose.

The new rates are listed below.

Engine size Petrol LPG
1400cc or less 15p 10p
1401cc to 2000cc 18p 12p
Over 2000cc 26p 17p
Engine size Diesel
1600cc or less 12p
1601cc to 2000cc 15p
Over 2000cc  

Link: HMRC guidance