Changes to Advisory Fuel rates from 1 March 2013

HMRC has published the latest table of advisory fuel rates, which apply to all journeys on or after 1 March 2013 until further notice.

Advisory fuel rates are HMRC-approved rates which apply where employers reimburse employees for business travel in a company car, and where employees reimburse the cost of fuel used for private travel in a company car.

Using the advisory rates will mean that there is no fuel benefit charge. HMRC will also accept the figures in the table for VAT purposes, though employers will need to retain receipts.

The changes from the rates which applied from 1 December 2012 are to Diesel cars, which have gone up by 1p per mile for cars with cc capacity of 1,400 or less and to the LPG rates, which have gone done by 1p per mile for cars of 1,400cc or less and between 1,401 & 2,000cc.

The full rates from 1 March 2013 are set out on HMRC’s website here.