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Revised advisory fuel rates 1 March 2013

Posted by: edwinsmith on February 27th, 2013

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 15p 10p
1401cc to 2000cc 18p 12p
Over 2000cc 26p 18p


Engine size Diesel
1600cc or less 13p
1601cc to 2000cc 15p
Over 2000cc 18p


The changes this quarter are the reduction of 1p for LPG engines sizes of 1400cc or less and 1401 to 2000cc and an increase of 1p per mile for diesel engines of 1600cc or less. There are no changes to the petrol rates.

The new rates will be effective from1 March 2013. 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 May 2013 and any changes made will be effective from 1 June 2013.  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:

  1. Reimbursement to employees of fuel used for business travel in a company car
  2. Repayment by employees of fuel used for personal travel in a company car
  3. Allowable input VAT on business mileage claims

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.

Filed under: Employers, PAYE, VAT