New advisory fuel rates from 1 June 2019

Published: Monday 15 July 2019

HMRC has announced new advisory fuel rates for use from 1 June 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 June, 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  15 pence  9 pence 
Over 2000cc  22 pence  14 pence 


Engine size  Diesel - amount per mile   
1600cc or less  10 pence   
1601cc to 2000cc  12 pence   
Over 2000cc  14pence   


Hybrid cars are treated as either petrol or diesel cars for this purpose.

The advisory electricity rate for fully electric cars is four pence per mile.

Electricity is not a fuel for car fuel benefit purposes.

For more information, visit HMRC’s website.

To read more information on important rates and figures online, read our Payroll Facts here.

If you would like to discuss any of the issues in this update and how they may affect your business, please contact the Payroll team here