Advisory fuel rates for company cars

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

Petrol

1400cc or less

12p

1401cc - 2000cc

14p

Over 2000cc

20p

Engine size

LPG

1400cc or less

8p

1401cc - 2000cc

10p

Over 2000cc

14p

Engine size

Diesel

1600cc or less

9p

1601cc - 2000cc

11p

Over 2000cc

13p

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.

More info: GOV.UK AFR