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Revised advisory fuel rates 1 December 2014

Posted by: edwinsmith on January 1st, 2015

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size Petrol LPG
1400cc or less 13p ↓ 9p ↔
1401cc to 2000cc 16p ↔ 11p ↔
Over 2000cc 23p ↓ 16p ↔

Engine size Diesel
1600cc or less 11p ↔
1601cc to 2000cc 13p ↔
Over 2000cc 16p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 December 2014. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in February 2015 and any changes made will be effective from 1 March 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

Reimbursement to employees of fuel used for business travel in a company car;
Repayment by employees of fuel used for personal travel in a company car;
Allowable input VAT claims on business mileage claims in personal cars made by employees.
A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.