Company cars - advisory fuel rates from 1 July 2009

These figures apply to all journeys on or after 1 July 2009 until further notice.

After discussions with the relevant trade bodies, the month’s notice previously given will be withdrawn when the rates are next announced in late November 2009. Employers making or collecting payments at the superseded rate because they have not been able to change their systems in time should make or require a second payment in respect of the same period in order to apply the new rate from its effective date.

Engine size

Petrol

Diesel

LPG

1400cc or less

10p

10p

7p

1401cc to 2000cc

12p

10p

8p

Over 2000cc

18p

13p

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
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 1400

48.8

43.9

97.5

443.4

10.1

10

1400 - 2000

40.0

36.0

97.5

443.4

12.3

12

over 2000

28.1

25.3

97.5

443.4

17.5

18

Diesel

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 2000

50.9

45.8

103.4

469.9

10.3

10

Over 2000

38.7

34.8

103.4

469.9

13.5

13

LPG

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 1400

39.0

35.1

52.0

236.4

6.7

7

1400 - 2000

32.0

28.8

52.0

236.4

8.2

8

over 2000

22.5

20.3

52.0

236.4

11.7

12

Notes:

  1. Mean mpg - miles per gallon - from manufacturers information, weighted by annual sales to businesses (Fleet Audits, 2007).
  2. Applied mpg - adjusted downwards by 10 per cent to take account of real driving conditions and lower fuel economy for older cars.
  3. For LPG, mpg is assumed to be 20 per cent lower than for petrol due to lower volumetric energy density.
  4. Department for Business, Enterprise & Regulatory Reform's latest petrol and diesel prices (18 May 2009), LPG from AA website (April 2009).

Will the rate per mile figures change if fuel prices go up or down?

The rates will be continue to be reviewed twice a year. Any changes will take effect on 1 June and 1 December.

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: