Advisory fuel rates for company cars

Category: Taxation - Posted On: Sep 17 2019

HMRC have published new company car advisory fuel rates, which take effect from 1 September 2019. The previous rates can also continue to be used for up to one month from the date the new rates apply.

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.

You must not use these rates in any other circumstances.

The advisory fuel rates for journeys undertaken on or after 1 September 2019 are as follows:

Engine SizePetrol
1400cc or less12p
1401cc - 2000cc14p
Over 2000cc21p

Engine SizeLPG
1400cc or less8p
1401cc - 2000cc10p
Over 2000cc14p

Engine SizeDiesel
1600cc or less10p
1601cc - 2000cc11p
Over 2000cc14p

The Advisory Electricity Rate for reimbursing employees for reimbursing employees for business travel in fully electric company cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.

If you have any queries regarding company cars, or mileage reimbursement, please email our EQ Taxperts or call one of our offices.