HMRC Advisory Fuel Rates 2017

advisory fuel rates

The HMRC Advisory Fuels Rates are the amounts set out by HMRC that you need when:

  1. reimbursing employees for business travel in their company cars;
  2. setting rates that employees repay businesses for private fuel use on fuel cards;
  3. calculating input VAT to be claimed on Mileage Allowance Payments.

You’ll need to use these HMRC Advisory Fuel Rates regardless of the true of of the fuel if you are doing any of the above three things.

How Much Are the HMRC Advisory Fuel Rates for 2017

The HMRC Advisory Fuel Rates can change each year but the effective rates from 1 December 2017 are:

Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 11 pence 7 pence
1401cc to 2000cc 14 pence 9 pence
Over 2000cc 21 pence 14 pence
Engine size Diesel – amount per mile
1600cc or less 9 pence
1601cc to 2000cc 11 pence
Over 2000cc 13 pence

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

HMRC Advisory Fuel Rates vs Mileage Allowance Payments

Mileage allowance payments are higher because they reflect wear and tear, insurance and car maintenance, so are used when people use their personal vehicles for business purposes.  Advisory fuel rates relate to just fuel so are used where individuals have been provided with Company Cars and the business covers the cost of car maintenance and insurance.