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Advisory fuel rates for company cars from 1 January 2009
HM Revenue & Customs (HMRC) has announced new advisory fuel rates, which apply to all journeys on or after 1 January 2009 until further notice.
Engine Size |
Petrol |
Diesel |
LPG |
1400cc or less |
10p |
11p |
7p |
1401cc to 2000cc |
12p |
11p |
9p |
Over 2000cc |
17p |
14p |
12p |
Petrol hybrid cars are treated as petrol cars for this purpose.
These rates are calculated from the fuel prices in the tables below:
Fuel |
Engine Size |
Mean MPG |
Applied MPG |
Fuel Price |
Fuel Price |
Pence per mile |
AFR |
Petrol |
up to 1400 |
48.8 |
43.9 |
93.1 |
423.3 |
9.6 |
10 |
Petrol |
1400-2000 |
40.0 |
36.0 |
93.1 |
423.3 |
11.8 |
12 |
Petrol |
over 2000 |
28.1 |
25.3 |
93.1 |
423.3 |
16.7 |
17 |
|
|
|
|
|
|
|
|
Diesel |
up to 2000 |
50.9 |
45.8 |
107.8 |
490.0 |
10.7 |
11 |
Diesel |
over 2000 |
38.7 |
34.8 |
107.8 |
490.0 |
14.1 |
14 |
|
|
|
|
|
|
|
|
LPG |
up to 1400 |
39.0 |
35.1 |
55.0 |
249.8 |
7.1 |
7 |
LPG |
1400-2000 |
32.0 |
28.8 |
55.0 |
249.8 |
8.7 |
9 |
LPG |
over 2000 |
22.5 |
20.3 |
55.0 |
249.8 |
12.3 |
12 |
Notes:
- Mean mpg (miles per gallon) - from manufacturers’ information, weighted by annual sales to businesses (Fleet Audits, 2007).
- Applied mpg - adjusted downwards by 10 per cent to take account of real driving conditions and lower fuel economy for older cars.
- For LPG, mpg is assumed to be 20 per cent lower than for petrol due to lower volumetric energy density.
- Department for Business, Enterprise & Regulatory Reform's latest petrol and diesel prices (25 November 2008), LPG from AA website (November 2008). Prices have been adjusted for the impending changes to fuel duty and VAT.
Will the rate per mile figures change if fuel prices go up or down?
Rates are reviewed twice a year. Any changes will take effect on 1 January and 1 July but will be published on the HMRC website about one month in advance.
HMRC will also consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates when each review is made and it considers that the price change will be sustained.
Employers should make themselves aware of any changes by referring to the HMRC website in June and December each year.
VAT
The figures in the table will be accepted for VAT purposes though employers will need to retain receipts in line with current legislation.
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