Advisory fuel rates for company cars

New company car advisory fuel rates have been published which took effect from 1 June 2016. 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 June 2016 are:

Engine size Petrol

1400cc or less 10p

1401cc - 2000cc 13p

Over 2000cc 20p

Engine size LPG

1400cc or less 7p

1401cc - 2000cc 9p

Over 2000cc 13p

Engine size Diesel

1600cc or less 9p

1601cc - 2000cc 10p

Over 2000cc 12p

The guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

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