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
