Advisory fuel rates for company cars
New company car advisory fuel rates have been published which take effect from 1 March 2020. The guidance states: 'You can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 March 2020 are:
|Engine size ||Petrol |
|1400cc or less ||12p |
|1401cc - 2000cc ||14p |
|Over 2000cc ||20p |
|Engine size ||LPG |
|1400cc or less ||8p |
|1401cc - 2000cc ||10p |
|Over 2000cc ||14p |
|Engine size ||Diesel |
|1600cc or less ||9p |
|1601cc - 2000cc ||11p |
|Over 2000cc ||13p |
Hybrid cars are treated as either petrol or diesel.
HMRC guidance states that the rates only apply when you either:
- reimburse employees for business travel in their company cars or
- require employees to repay the cost of fuel used for private travel.
The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.
You must not use these rates in any other circumstances.
If you would like to discuss your car policy, please contact us.
Internet link: GOV.UK AFR