Advisory fuel rates for company cars

New company car advisory fuel rates have been published which take effect from 1 March 2020.

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.

Internet link: GOV.UK AFR

Have we convinced you yet?

Please feel free to get in touch via phone email or our quick contact form.

We offer initial free consultations simply contact us to find out more.

Copyright

© 2020 Higson & Co. All rights reserved.

powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.

Contact Us

Please call:
0115 947 5662

Quick links

Site map | Accessibility | Disclaimer | Privacy | Help |

Address
Higson & Co, White House, Wollaton Street, Nottingham, Nottinghamshire NG1 5GF

D V Bonnert FCA, W E Messom FCA, S C R Skill FCA, Mrs G J Strickland FCA, D R Wallwork BA FCA, Miss E C Davey FCCA

Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference C005395100.

A member of the ICAEW Practice Assurance Scheme