23 December 2014    |    Taxation, Payroll

Advisory fuel rates

Fuel rates

The HMRC advisory fuel rates have been changed with effect for all journeys undertaken on or after 1 December 2014. Until that date, the rates in brackets can be used.

These rates only apply to employees using a company car on business purposes.

Engine size,Petrol
1400cc or less, 13p (14p)
1401cc – 2000cc,16p (16p)
Over 2000cc,23p (24p)
Engine size,Diesel
1600cc or less,11p (11p)
1601cc – 2000cc,13p (13p)
Over 2000cc,16p (17p)
Engine size,LPG
1400cc or less,9p (9p)
1401cc – 2000cc,11p (11p)
Over 2000cc,16p (16p)
HMRC approved mileage fuel rates
These amounts can be paid tax-free subject to the usual conditions. The simple conditions are that the journey should be documented and mileage actually recorded at the time that the journey is undertaken in the company vehicle.

Different fuel rates apply where the trip is made in the employees own car, and these (higher) fuel rates reflect the  costs of ownership, insurance and repairs, as well as the simple cost of the specific journey.

For more information about advisory fuel rates, please click here.


The information provided is for general information purposes only.

Legislation and details may have changed since this was written.  The text may not include all matters that are relevant to your individual situation.

You should not make decisions, or refrain from making decisions, without taking further professional advice about your specific circumstances.

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