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Advisory fuel rates for company cars

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New company car advisory fuel rates have been published which take effect from 1 September 2019. 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 September 2019 are:

Engine sizePetrol
1400cc or less12p
1401cc – 2000cc14p
Over 2000cc21p
Engine sizeLPG
1400cc or less8p
1401cc – 2000cc10p
Over 2000cc14p
Engine sizeDiesel
1600cc or less10p
1601cc – 2000cc11p
Over 2000cc14p

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.