Advisory fuel rates for company cars

New company car advisory fuel rates have been published which take effect from 1 September 2020. The rates only apply to employees using a company car. The guidance states:

'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 1 September 2020 are:

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 size Diesel
1600cc or less 8p
1601cc - 2000cc 10p
Over 2000cc 12p

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.

You must not use these rates 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.

If you would like to discuss your car policy, please contact us.

Internet link: GOV.UK AFR

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

© 2024 Manningtons. All rights reserved. We use cookies on this website, you can find more information about cookies here.

Manningtons, 8 High Street, East Sussex, Heathfield, East Sussex TN21 8LS | powered by totalSOLUTION
Battle Office, 39 High Street, Battle, East Sussex TN33 0EE

This firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.

Registered to carry out audit work in the UK and regulated for a range of investment activities by The Institute of Chartered Accountants in England and Wales. Our registration number is C001366129 and details can be found on www.auditregister.org.uk. Also practising as Manningtons Ltd. Company No. 04988891 Registered in England & Wales at the above address.