Advisory fuel rates for company cars

New company car advisory fuel rates have been published by HMRC and took effect from 1 December 2018.

New company car advisory fuel rates have been published by HMRC and took effect from 1 December 2018.

The rates are based on fuel prices and adjusted miles per gallon figures. 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 December 2018 are:

Petrol

Engine size (cc) Pence per mile
1400 or less 12
1401 - 2000 15
Over 2000 22

LPG

Engine size (cc) Pence per mile
1400 or less 8
1401 - 2000 10
Over 2000 15

Diesel

Engine size (cc) Pence per mile
1600 or less 10
1601 - 2000 12
Over 2000 14

The advisory electricity rate for fully electric cars is 4p per mile. Electricity is not a fuel for car fuel benefit purposes.

HMRC guidance states that the rates only apply when you either:

  • reimburse employees for business travel in their company cars
  • require employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

If you would like to discuss your company car policy, please contact:

Carla Graves
Director
+44 (0)20 7430 5936 / cgraves@fitzandlaw.com

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