Advisory Fuel Rates For Company Cars

advisory fuel rates

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
hjkh
Petrol
fgj
1400cc or less
hl
12p
gdf
1401cc – 2000cc
dfg
14p
fdg
Over 2000cc
dfg
20p
dfg
Engine size
dfg
LPG
dfg
1400cc or less
dg
8p
dg
1401cc – 2000cc
dfg
10p
fg
Over 2000cc
dfg
14p
dfg
Engine size
dfg
Diesel
dg
1600cc or less
dfg
9p
fdg
1601cc – 2000cc
gdf
11p
dfg
Over 2000cc
dfg
13p
fdg

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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