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Company cars - advisory fuel rates from 1st September 2014

These rates apply to all journeys on or after 1st September 2014 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Engine sizePetrolLPG
1400cc or less15p10p
1401cc to 2000cc18p12p
Over 2000cc26p18p
Engine sizeDiesel
1600cc or less12p
1601cc to 2000cc15p
Over 2000cc18p

Petrol hybrid cars are treated as petrol cars for this purpose.
These rates are calculated from the fuel prices in the tables below:
Petrol
Engine size (cc) Mean
MPG
Applied
MPG
Fuel price
(per litre)
Fuel price
(per gallon)
Pence
per mile
AFR
up to 140051.0643.4129.3587.813.514
1401 - 200042.2435.9129.3587.816.416
over 200028.6324.3129.3587.824.224
Diesel
Engine size
(cc)
Mean
MPG
Applied
MPG
Fuel price
(per litre)
Fuel price
(per gallon)
Pence
per mile
AFR
Up to 160062.3653.0133.7608.011.511
1601 to 200053.2545.3133.7608.013.413
Over 200043.3036.8133.7608.016.517
LPG
Engine size
(cc)
Mean
MPG
Applied
MPG
Fuel price
(per litre)
Fuel price
(per gallon)
Pence
per mile
AFR
up to 140040.8 34.770.3319.69.29
1401 - 200033.828.770.3319.611.111
over 200022.9 19.570.3319.616.416

Notes:
1. Mean mpg - miles per gallon - from manufacturers' information, weighted by annual sales to businesses (Fleet Audits, 2010).
2. Applied mpg - adjusted downwards by 15 per cent to take account of real driving conditions and lower fuel economy for older cars.
3. For LPG, mpg is assumed to be 20 per cent lower than for petrol due to lower volumetric energy density.
4. Department for Business, Innovation & Skill's latest petrol and diesel prices (21 November 2011), LPG (UK Average) from AA website (November 2011).
Will the rate per mile figures change if fuel prices go up or down?
The rates are now to be reviewed four times a year. Any changes will take effect at the beginning of each calendar quarter ? on 1 March, 1 June, 1 September and 1 December and will be published on the HM Revenue & Customs (HMRC) website shortly before the date of change.
In view of the increased frequency of review, HMRC will no longer consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates.
Employers should make themselves aware of any changes by referring to this page in late February, May, August and November each year. It is the primary source of information.

VAT
Customs will also accept the figures in the table for VAT purposes though employers will need to retain receipts in line with current legislation.
Further information is available for:
? Earlier rates January 2008 to November 2011
? Earlier rates January 2002 to December 2007
? Use of rates

Other news articles:
1, 2, [3], 4, 5, 6, 7, 8, 9, 10
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