Chartered Tax Advisers & Accountants

New company car fuel rates from 1 March 2015

Published On: 09 March 2015
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HMRC have announced new advisory fuel rates for employees driving company cars, and which will apply to all journeys made on or after 1 March 2015, as given below.

 Engine Size




 1,400cc or less




 1,401cc to 2,000cc




 1,600cc or less



 1,601cc to 2,000cc



 Over 2,000cc





For this purpose, hybrid cars are treated as either petrol or diesel, such that a petrol hybrid is classed as a petrol car.

The previous rates can be used for up to one month from the date the new rates came into force.  Employers are not under any obligation to make or require supplementary payments.  The amounts can also be used for VAT but employers must keep receipts.