Advisory fuel rates for company cars

New company car advisory fuel rates have been published which took effect from 1 March 2017. The guidance states: 'You can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 March 2017 are:

Engine size Petrol
1400cc or less 11p
1401cc - 2000cc 14p
Over 2000cc 22p
Engine size LPG
1400cc or less 7p
1401cc - 2000cc 9p
Over 2000cc 14p
Engine size Diesel
1600cc or less 9p
1601cc - 2000cc 11p
Over 2000cc 13p

Other points to be aware of about the advisory fuel rates:

  • Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.
  • The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC.

If you would like to discuss your car policy, please contact us.

Internet link: GOV.UK AFR

Home | Contact us | Site map | Accessibility | Help | Disclaimer |

© 2024 Poole Resources Ltd. All rights reserved. Poole Resources is a trading name of Poole Resources Limited. Registered in England & Wales No: 06138681. Registered office as below. A list of directors is available upon request.


Poole Resources Ltd, 95 High Street, Street, Somerset BA16 0EZ
We use cookies on this website, you can find more information about cookies here. powered by totalSOLUTION
ACCA logo