Advisory fuel rates updated

24 October 2006

Advisory fuel rates have been updated with effect from 1 July 2006

The advisory fuel rates apply where employers:

  • reimburse employees for business travel in their company cars; or

  • require employees to repay the cost of fuel used for private travel.

The rates below apply to all journeys on or after 1 July 2006 until further notice:

Engine Size

Petrol

Diesel

LPG

1400cc or less

11p

10p

7p

1401cc to 2000cc

13p

10p

8p

Over 2000cc

18p

14p

11p

Although not mandatory, if the rate per mile is no higher than the advisory rate HMRC will accept there is no taxable profit and no class 1 NICs liability. This is because the rates are intended to reflect actual average fuel costs.