HMRC advisory fuel rates for company car users from 1 June

HMRC update fuel rates

HMRC has published the latest advisory fuel rates for company car users, effective from 1 June 2019 increasing the majority of mileage rates by 1p per mile to reflect higher fuel costs. The previous rates, effective March 2019, 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.
 

The advisory electricity rate for fully electric cars is 4p per mile. Electricity is not a fuel for car fuel benefit purposes.

 

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.

 

Advisory fuel rates from 1 June 2019
Engine Size Petrol - amount per mile LPG - amount per mile
1400cc or less 12p 8p
1401cc or less 15p 9p
Over 200cc  22p 14p 

 

Engine Size  Diesel - amount per mile
1600cc or less  10p
1601 to 2000cc 12p
Over 2000cc 14p

 

Hybrid cars are treated as either petrol or diesel cars for this purpose.

 

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.