New company car advisory fuel rates 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 rates 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