New Advisory Fuel Rates were published by HM Revenue and Customs in late
November 2009. They came into force on December 1.

Advisory Fuel Rates apply where employers reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel.
They provide a range of rates based on engine size and fuel type, and when used, are deemed to be tax-free.

HMRC reviews the rates twice a year with changes normally introduced on January 1 and July 1.

This year the one-month advance notice has been withdrawn.

The current rates with previous rates in brackets are:
• 1400cc or less: petrol 11p (10p); diesel 11p (10p); LPG 7p (7p)
• 1401cc to 2000cc: petrol 14p (12p); diesel 11p (10p); LPG 8p (8p)
• Over 2000cc: petrol 20p (18p); diesel 14p (13p); LPG 12p (12p)

Petrol hybrid cars are treated as petrol cars.

Full details of the schedule and the basis for the calculations can be found on the HMRC web-site at http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm. There are also links to schedules used in previous periods.

Find out how much fuel your fleet cars will use - click here to go to the Fleet News fuel cost calculator