HMRC advisory fuel rates for company car users from 1 March

Fuel pumps

 

 

The advisory fuel rates apply from 1 March 2019 and have not increased on the previous quarter rates. The previous rates 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 4p per mile. Electricity is not a fuel for car fuel benefit purposes.

 
Advisory fuel rates from 1 March 2019
Engine Size Petrol - Amount per Mile LPG - Amount per Mile
1400cc or less 11p 7p
1401 to 2000cc 14p 8p
Over 2000cc 21p 13p

 

Engine Size  Diesel - Amount per Mile
1600cc or less 10p
1601cc to 2000cc 11p
Over 2000cc 13p

 

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