HMRC fuel rates

HMRC Advisory Fuel Rates

Applicable from 1 March 2021

What you need to know

These rates apply to all journeys on or after 1 March 2021. 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 10p 7p 1600cc or less 9p
1401cc to 2000cc 12p8p 1601cc to 2000cc 11p
Over 2000cc18p 12p Over 2000cc 12p

The previous rates from 1 December 2020 to 28 February 2021 were:

Engine size Petrol LPG Engine size Diesel
1400cc or less 10p 7p 1600cc or less 8p
1401cc to 2000cc 11p 8p 1601cc to 2000cc 10p
Over 2000cc 17p 12p Over 2000cc 12p

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

Andy Hamman
Andy Hamman
Director, Employment Tax
London