Advisory fuel rates for company cars
The guidance states that ‘you can use the previous rates for up to one month from the date the new rates apply.’
The advisory fuel rates for journeys undertaken on or after 1st September 2020 are as follows:
Engine Size – Petrol
1400cc or less – 10p
1401cc – 2000cc – 12p
Over 2000cc – 17p
Engine Size – LPG
1400cc or less – 7p
1401cc – 2000cc – 8p
Over 2000cc – 12p
Engine – Diesel
1800cc – 8p
1601cc – 2000cc – 10p
Over 2000cc – 12p
Her Majesty’s Revenues and Customs (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.
These advisory fuel rates must not be used in any other circumstances.
The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.
Laura Bright at Harvey, Telford & Bates comments on the new advisory rates:
“With these rates having come into place in September, it is now paramount that businesses adhere to the new fuel advisory rates. If you would like to discuss the new rates or have any queries you can get in touch with a member of our expert team.”
For assistance or to discuss car policy queries, please contact us at 01743 462604 or email us at [email protected] to schedule an appointment.
