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New Advisory Fuel Rates For Company Cars

HMRC have published new company car advisory fuel rates which took effect from 1 September 2020. Though guidance states that can use the previous rates for up to one month from the date the new rates apply. You can find the previous rates here.

The advisory fuel rates for journeys undertaken on or after 1 September 2020 are:

Engine SizePetrol
1400cc or less10p
1401cc - 2000cc12p
Over 2000cc17p
Engine SizeLPG
1400cc or less7p
1401cc - 2000cc8p
Over 2000cc12p
Engine SizeDiesel
1600cc or less8p
1601cc - 2000cc10p
Over 2000cc12p

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.

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. 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.

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