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Advisory Fuel Rates For Company Cars

The new company car advisory fuel rates, which will take effect from 1 June 2021, have been published by HMRC.

The advisory fuel rates for journeys undertaken on or after 1 June are:

Engine SizePetrol
1400cc or less11p
1401cc - 2000cc13p
Over 2000cc19p
Engine SizeLPG
1400cc or less8p
1401cc - 2000cc9p
Over 2000cc14p
Engine SizeDiesel
1600cc or less9p
1601cc - 2000cc11p
Over 2000cc13p

The advisory electricity rate for reimbursing employees for business travel in fully electric company cars is 4 pence per mile and hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

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 previous rates, which you can find here, can still be used for up to 1 month from the date the new rates apply.

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

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