Company cars - advisory fuel rates from 1 September 2014

These rates apply to all journeys on or after 1 September 2014 until further notice. For 1 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.

Engine size Petrol LPG
1400cc or less 14p 9p
1401cc to 2000cc 16p 11p
Over 2000cc 24p 16p
Engine size Diesel
1600cc or less 11p
1601cc to 2000cc 13p
Over 2000cc 17p

Hybrid cars are treated as either petrol or diesel 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 51.06 43.4 129.3 587.8 13.5 14
1401 - 2000 42.24 35.9 129.3 587.8 16.4 16
over 2000 28.63 24.3 129.3 587.8 24.2 24
Diesel
Engine size
(cc)
Mean
MPG
Applied
MPG
Fuel price
(per litre)
Fuel price
(per gallon)
Pence
per mile
AFR
Up to 1600 62.36 53.0 133.7 608.0 11.5 11
1601 to 2000 53.25 45.3 133.7 608.0 13.4 13
Over 2000 43.30 36.8 133.7 608.0 16.5 17
LPG
Engine size
(cc)
Mean
MPG
Applied
MPG
Fuel price
(per litre)
Fuel price
(per gallon)
Pence
per mile
AFR
up to 1400 40.8 34.7 70.3 319.6 9.2 9
1401 - 2000 33.8 28.7 70.3 319.6 11.1 11
over 2000 22.9 19.5 70.3 319.6 16.4 16

Notes:

  1. Mean mpg - miles per gallon - from manufacturers' information, weighted by annual sales to businesses (Fleet Audits average, tax year 2010 to 2012).
  2. Applied mpg - adjusted downwards by 15% to take account of real driving conditions and lower fuel economy for older cars.
  3. For LPG, mpg is assumed to be 20% lower than for petrol due to lower volumetric energy density.
  4. Department for Energy and Climate Change latest petrol and diesel prices (19 August 2014), LPG (UK Average) from AA website (July 2014).

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

Since March 2011 the rates have been reviewed 4 times a year. Any changes take effect at the beginning of each calendar quarter - on 1 March, 1 June, 1 September and 1 December and will be published on the HM Revenue & Customs (HMRC) website shortly before the date of change.

In view of the increased frequency of review, HMRC will no longer consider changing the rates if fuel prices fluctuate by 5% from the published rates.

Employers should make themselves aware of any changes by referring to this page in late February, May, August and November each year. It is the primary source of information.

VAT

HMRC 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: