Chartered Accountants
Advisory Fuel Rates For Company Cars
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 Size | Petrol |
|---|---|
| 1400cc or less | 12p |
| 1401cc - 2000cc | 14p |
| Over 2000cc | 12p |
| Engine Size | LPG |
|---|---|
| 1400cc or less | 8p |
| 1401cc - 2000cc | 10p |
| Over 2000cc | 14p |
| Engine Size | Diesel |
|---|---|
| 1600cc or less | 10p |
| 1601cc - 2000cc | 11p |
| Over 2000cc | 14p |
The Advisory Electricity Rate 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 Taxperts or call one of our offices.
