Advisory fuel rates for company cars
New advisory fuel rates for company car have been published which take effect from 1 March 2020. The guidance states: ‘You can use the previous rates for up to one month from the date the new rates apply’. The advisory fuel rates for company cars only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 March 2020 are:
| Engine size | Petrol |
| 1400cc or less | 12p |
| 1401cc – 2000cc | 14p |
| Over 2000cc | 20p |
| Engine size | LPG |
| 1400cc or less | 8p |
| 1401cc – 2000cc | 10p |
| Over 2000cc | 14p |
| Engine size | Diesel |
| 1600cc or less | 9p |
| 1601cc – 2000cc | 11p |
| Over 2000cc | 13p |
Hybrid cars are treated as either petrol or diesel.
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.
The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.
You must not use these rates in any other circumstances.
If you would like to discuss your car policy, please contact us.
Internet link: GOV.UK AFR
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