Company cars - advisory fuel rates from 1 December 2009
These rates apply to all journeys on or after 1 December 2009 until further notice.
After discussions with the relevant trade bodies, the month's notice previously given has been withdrawn for this change. Employers are not obliged to reimburse their employees for business fuel at these rates as long as they do not exceed them overall. Employers making or collecting payments at the superseded rate because they have not been able to change their systems in time may use their judgement on whether to make or require a second payment in respect of the same period in order to apply the new rate from its effective date. However, employers should note that under the normal rules, employees are only able to avoid the car fuel benefit charge if the amount they repay in respect of private fuel at least equals the amounts based on the rates as published.
Engine size |
Petrol |
Diesel |
LPG |
|---|---|---|---|
1400cc or less |
11p |
11p |
7p |
1401cc to 2000cc |
14p |
11p |
8p |
Over 2000cc |
20p |
14p |
12p |
Petrol hybrid cars are treated as petrol cars for this purpose.
These rates are calculated from the fuel prices in the tables below:
Petrol
| Engine size |
Mean |
Applied |
Fuel price |
Fuel price |
Pence |
AFR |
|---|---|---|---|---|---|---|
| up to 1400 |
48.8 |
43.9 |
108.7 |
494.3 |
11.3 |
11 |
| 1400 - 2000 |
40.0 |
36.0 |
108.7 |
494.3 |
13.7 |
14 |
| over 2000 |
28.1 |
25.3 |
108.7 |
494.3 |
19.5 |
20 |
Diesel
| Engine size |
Mean |
Applied |
Fuel price |
Fuel price |
Pence |
AFR |
|---|---|---|---|---|---|---|
| up to 2000 |
50.9 |
45.8 |
109.9 |
499.5 |
10.9 |
11 |
| Over 2000 |
38.7 |
34.8 |
109.9 |
499.5 |
14.3 |
14 |
LPG
| Engine size |
Mean |
Applied |
Fuel price |
Fuel price |
Pence |
AFR |
|---|---|---|---|---|---|---|
| up to 1400 |
39.0 |
35.1 |
53.3 |
242.3 |
6.9 |
7 |
| 1400 - 2000 |
32.0 |
28.8 |
53.3 |
242.3 |
8.4 |
8 |
| over 2000 |
22.5 |
20.3 |
53.3 |
242.3 |
12.0 |
12 |
Notes:
- Mean mpg - miles per gallon - from manufacturers information, weighted by annual sales to businesses (Fleet Audits, 2007).
- Applied mpg - adjusted downwards by 10 per cent to take account of real driving conditions and lower fuel economy for older cars.
- For LPG, mpg is assumed to be 20 per cent lower than for petrol due to lower volumetric energy density.
- Department for Business, Enterprise & Regulatory Reform's latest petrol and diesel prices (23 November 2009), LPG from AA website (November 2009).
Will the rate per mile figures change if fuel prices go up or down?
The rates are reviewed twice a year. Any changes will take effect on 1 June and 1 December and will be published on the HM Revenue & Customs (HMRC) website shortly before the date of change.
HMRC will also consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates when each review is made and we consider the price change will be sustained.
Employers should make themselves aware of any changes by referring to this page in late May and November each year. It is the primary source of information.
VAT
Customs will also accept the figures in the table for VAT purposes though employers will need to retain receipts in line with current legislation.
Further information is available for:
