These rates apply from 1 March 2017 and have remained constant (with the exception of petrol cars with engines over 2000c) on the previous quarter rates. The previous rates can be used for up to one month from the date the new rates apply.

The rates apply in the following circumstances:

• reimburse employees for business travel in their company cars; or
• require employees to repay the cost of fuel used for private travel.

These can’t be used in any other circumstances. If they are used, it is not necessary to apply for a dispensation to cover the payments made.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.

Advisory fuel rates from 1 March 2017

Engine size	Petrol – amount per mile	LPG – amount per mile
1400cc or less	11p	7p
1401cc to 2000cc	14p	9p
Over 2000cc	22p	14p

 

Engine size	Diesel – amount per mile
1600cc or less	9p
1601cc to 2000cc	11p
Over 2000cc	13p

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC review rates quarterly on 1 March, 1 June, 1 September and 1 December.