Advisory Fuel Rate for Company Cars

Changes on some engine/fuel bands

The suggested reimbursement rates for employees’ private mileage using their company car have been changed by HMRC as of September 1st 2016. The previous rate is shown in brackets.

 Engine Size Petrol Diesel LPG
 1400cc or less 10p 7p
 1600cc or less 9p (8p)
 1401cc to 2000cc 13p (12p) 9p (8p)
 1601 to 2000cc 10p
 Over 2000cc 20p (19p) 12p (11p) 13p

The rates can also be used if you ask your staff to repay the cost of fuel used for private travel but are not applicable to vans.

If you have any queries on how to handle reimbursements just give Lewis Smith & Co. a call on 01384 235549 or email


Lewis Smith & Co. – Supporting Stourbridge businesses for more than 30 years