Chartered Accountants
Advisory Fuel Rates For Company Cars
The new company car advisory fuel rates, which will take effect from 1 March 2021, have been published by HMRC. You can use the previous rates for up to 1 month from the date the new rates apply, which you can find here.
The advisory fuel rates for journeys undertaken on or after 1 March 2021 are:
| Engine Size | Petrol |
|---|---|
| 1400cc or less | 10p |
| 1401cc - 2000cc | 12p |
| Over 2000cc | 18p |
| Engine Size | LPG |
|---|---|
| 1400cc or less | 7p |
| 1401cc - 2000cc | 8p |
| Over 2000cc | 12p |
| Engine Size | Diesel |
|---|---|
| 1600cc or less | 9p |
| 1601cc - 2000cc | 11p |
| Over 2000cc | 12p |
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 Electricity Rate for reimbursing employees for business travel in fully electric company cars is 4 pence per mile. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
If you have any queries regarding company cars, or mileage reimbursement, please email our Taxperts or call one of our offices.
