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Revised advisory fuel rates 1 September 2015

Posted by: CarolineMeredith on September 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 11p ↓ 7p ↓
1401cc to 2000cc 14p ↔ 9p ↔
Over 2000cc 21p ↔ 14p ↔


Engine size Diesel
1600cc or less 9p ↓
1601cc to 2000cc 11p ↓
Over 2000cc 13p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 September 2015. 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 August 2015 and any changes made will be effective from 1 September 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:

  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 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.