News added on 30.08.2017



Company cars – advisory fuel rate changes

HMRC has updated its advisory fuel rates with effect from 1 September 2017.

Reimbursement. The advisory fuel rate (AFR) is mainly of use in two situations. Firstly, where an employee personally pays for fuel used in their company car or van and claims reimbursement from their employer for business mileage. Secondly, where the business pays for all fuel, e.g. via a company fuel card or account at a petrol station, and requires the employee to reimburse it for the cost of their non-business mileage.

No tax or NI for employee. Using the AFR means a company doesn't need to work out the actual cost of fuel per mile for each of its company vehicles. It can reimburse their employees safe in the knowledge that HMRC will accept that the payment doesn't trigger a benefit-in-kind charge.

New rates. The table below shows the new rates that apply from 1 September 2017 with the previous rate in brackets where there has been a change.


Engine size



1,400cc or less



1,401cc to 2,000cc

13p (14p)

8p (9p)

Over 2,000cc


13p (14p)


Engine size


1,600cc or less


1,601cc to 2,000cc


Over 2,000cc

12p (13p)

The new advisory fuel rates apply from 1 September 2017. There have been a few changes this time for all types of car, so make sure you check the new rates carefully.

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