These rates apply to all journeys on or after 1 June 2011 until further notice. 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	LPG
1400cc or less	15p	11p
1401cc to 2000cc	18p	13p
Over 2000cc	26p	18p

Engine size	Diesel
1600cc or less	12p
1601cc to 2000cc	15p
Over 2000cc	18p

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	47.36	40.3	136.1	618.8	15.4	15
1401-2000	40.21	34.2	136.1	618.8	18.1	18
over 2000	28.22	24.0	136.1	618.8	25.8	26

Diesel

Engine size(cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Pence per mile	AFR
Up to 1600	60.48	51.4	140.8	639.9	12.4	12
1601 to 2000	50.24	42.7	140.8	639.9	15.0	15
Over 2000	41.45	35.2	140.8	639.9	18.2	18

LPG

Engine size(cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Pence per mile	AFR
up to 1400	37.9	32.2	77.3	351.4	10.9	11
1401-2000	32.2	27.3	77.3	351.4	12.9	13
over 2000	22.6	19.2	77.3	351.4	18.3	18

Notes:

Mean mpg-miles per gallon-from manufacturers’ information, weighted by annual sales to businesses (Fleet Audits, 2009).

Applied mpg-adjusted downwards by 15 per cent to take account of real driving conditions and lower fuel economy for older cars. This is the same figure as used by The Energy Saving Trust.

For LPG, mpg is assumed to be 20 per cent lower than for petrol due to lower volumetric energy density.

Department for Business, Innovation & Skill's latest petrol and diesel prices (24/05/2011), LPG (UK Average) from AA website (May 2011).

Will the Rate Per Mile Figures Change If Fuel Prices Go Upor Down?

The rates are now to be reviewed four times a year. Any changes will take effect at the beginning of each calendar quarter – on 1 March, 1 June, 1 September and 1 December and will be published on the HM Revenue & Customs (HMRC) website shortly before the date of change.

In view of the increased frequency of review, HMRC will no longer consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates.

Employers should make themselves aware of any changes by referring to this page in late February, May, August 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.

Source: HMRC. www.hmrc.gov.uk. Copyright Acknowledged.