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Latest Advisory Fuel Rates


Posted on 1 September 2016

HMRC have recently released the latest Advisory fuel rates that came into effect from 1 September 2016.

These rates apply to employees using company cars on business journeys.

There has been a 1p per mile increase in respect of petrol engine cars of 1400cc or less. The rates for petrol engine cars of over 1401cc remains unchanged. For diesel engine cars there has been a 1p per mile decrease for cars of engine size 1600cc to 2000cc and for engines over 2000cc. The rate for diesel engine cars 1600cc or less remains unchanged.

The link to the new rates is below for your information, please note that although the HMRC link refers to changes from 1 March 2016 it does take you to the new rates in place from 1 September.

Link to the new rates

It is important to ensure that employees are paid within the HMRC rates to avoid a tax charge arising. During an Employer Compliance Inspection, one of the key checks made by HMRC relates to claims made relating to business travelled, both in company cars and employees own vehicles and HMRC make a significant amount of recoveries from employers in respect of excess rate payments.

If you would like any help in understanding how Smith Cooper can help you to minimise your risks of underpaid tax and NIC arising during HMRC compliance inspections, please contact our Employment Tax team.

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