VAT

HMRC Advisory Fuel Rates 2010

These rates apply to all journeys on or after 1 June 2010 until further notice, allowing them to reflect fuel prices more quickly. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

 

Engine size

Petrol

Diesel

LPG

1400cc or less

12p

11p

8p

1401cc to 2000cc

15p

11p

10p

Over 2000cc

21p

16p

14p

 

Petrol hybrid cars are treated as petrol cars for this purpose.

These rates are calculated from the fuel prices in the tables below:
 

Petrol

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 1400

49.3

44.4

 119.9 545.2 12.3 12

1400 - 2000

41.2

37.1

 119.9 545.2 14.7 15

over 2000

28.8

25.9

 119.9 545.2 21.0 21

 

Diesel

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 2000

54.3

48.8

121.9

554.3

11.4

11

Over 2000

39.4

35.4

121.9

554.3

15.6

16

 

LPG

Engine size
(cc)

Mean
MPG

Applied
MPG

Fuel price
(per litre)

Fuel price
(per gallon)

Pence
per mile

AFR

up to 1400

39.4

35.5

65.4

297.3

8.4

8

1400 - 2000

33.0

29.7

65.4

297.3

10.0

10

over 2000

23.0

20.7

65.4

297.3

14.3

14

 

Notes:

  1. Mean mpg - miles per gallon - from manufacturers information, weighted by annual sales to businesses (Fleet Audits, 2008).
     
  2. Applied mpg - adjusted downwards by 10 per cent to take account of real driving conditions and lower fuel economy for older cars.
     
  3. For LPG, mpg is assumed to be 20 per cent lower than for petrol due to lower volumetric energy density.
     
  4. Department for Business, Innovation & Skill's latest petrol and diesel prices (24 May 2010), LPG from AA website (May 2010).
     

Will the rate per mile figures change if fuel prices go up or down?

The rates are reviewed twice a year. Any changes will take effect on 1 June and 1 December and will be published on the HM Revenue & Customs (HMRC) website shortly before the date of change.

HMRC will also consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates when each review is made and we consider the price change will be sustained.

Employers should make themselves aware of any changes by referring to this page in late May and November each year. It is the primary source of information.

VAT

Customs will also accept the figures in the table for VAT purposes though employers will need to retain receipts in line with current legislation.

Further information is available for: