HMRC advisory fuel rate for company car users from 1 June 2021.

 

HMRC have updated their advisory fuel rates for company car users, effective 1 June 2021. 

 

There are changes to petrol, diesel and LPG rates. The previous rates, effective March 2021, can be used for up to one month from the date the new rates apply.

 

 

The rates only apply in the following circumstances:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

 

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

 

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A National Insurance to pay.

 

The advisory electricity rate for fully electric cars is unchanged at 4p per mile. Electricity is not a fuel for car fuel benefit purposes. Hybrid cars are treated as either petrol or diesel cars for this purpose.

 

Engine Size (cc)

Petrol – amount per mile

LPG – amount per mile

Up to 1400

11p

8p

1401 to 2000

13p

9p

Over 2000

19p

14p

 

Engine Size (cc)

Diesel – amount per mile

Up to 1600

9p

1601 to 2000

11p

Over 2000

13p