HMRC Advisory Fuel Rates

Applicable from 1 September 2018

What you need to know

These rates apply to all journeys on or after 1 September 2018. For one month from the date of change, employers may use either the previous or new current rates. Employers may make or require supplementary payments (but are under no obligation to do either).

Engine size Petrol LPG Engine size Diesel
1400cc or less 12p 7p 1600cc or less 10p
1401cc to 2000cc 15p 9p 1601cc to 2000cc 12p
Over 2000cc 22p 13p Over 2000cc 13p

The previous rates from 1 June to 31 August 2018 were:

Engine size Petrol LPG Engine size Diesel
1400cc or less 11p 7p 1600cc or less 10p
1401cc to 2000cc 14p 8p 1601cc to 2000cc 11p
Over 2000cc 22p 14p Over 2000cc 13p

The above rates only apply where employers:

  • reimburse employees for business travel in a company car
  • require employees to repay the cost of fuel used for private travel.

Where an employee uses their own car for business journeys, the Approved Mileage Allowance Payments should be used. These rates have not changed and remain at:

  • 45p a mile for the first 10,000 business miles
  • 25p a mile thereafter.

Contact us

Susan Ball
Susan Ball
Partner, Head of Employers Advisory Services
London