HMRC has announced new Advisory Fuel Rates for use from 1 September 2019.
The rates apply when you reimburse employees for business travel in their company cars. If you pay an amount up to the level of the Advisory Rate, HMRC deem there is no tax or Class 1As due.
The rates also apply if employees are required to repay the cost of fuel used for private travel back to the employer. If the employees pay a minimum of the Advisory Rate, HMRC will accept there is no fuel benefit charge.
You can use the old rates up until the end of September, then you must apply the new rates.
| Engine size |
Petrol - amount per mile |
LPG - amount per mile |
| 1400cc or less |
12 pence |
8 pence |
| 1401cc to 2000cc |
14 pence |
10 pence |
| Over 2000cc |
21 pence |
14 pence |
| Engine size |
Diesel - amount per mile |
| 1600cc or less |
10 pence |
| 1601cc to 2000cc |
11 pence |
| Over 2000cc |
14 pence |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The Advisory Electricity Rate for fully electric cars is 4 pence per mile.
Electricity is not a fuel for car fuel benefit purposes.
For more information, visit HMRC’s website: https://www.gov.uk/government/publications/advisory-fuel-rates.