Find out about advisory fuel rates for company car users, when you can use them and how they’re calculated.
These rates apply to employees using a company car for business travel and are to be used in the following circumstances:
- When reimbursing employees for business travel in their company cars
- When employees need to repay the cost of fuel used for private travel
To read more information about how these rates are calculated and how to apply them, please follow this link.
It is important to ensure that employees are paid within the HMRC rates to avoid a tax charge arising. During an HMRC Employer Compliance Inspection, one of the key checks conducted by HMRC relates to claims made for business travel – in company cars, as well as employees’ own vehicles, and HMRC make a significant number of recoveries from employers who make excess rate payments.
If you would like any help in understanding how PKF Smith Cooper can help you to minimise your risks of underpaid tax and NIC arising during HMRC Compliance Inspections, please contact our Employment Tax team.
September fuel rates
These rates apply to employees using a company car for business travel and are to be used in the following circumstances:
· When reimbursing employees for business travel in their company cars
· When employees need to repay the cost of fuel used for private travel
Here are the changes to petrol, diesel, LPG and fully electric car rates:
Petrol
· Up to 1400cc – 14p per mile (no change)
· 1401 to 2000cc – 17p per mile (no change)
· Over 2000cc – 27p per mile (+1p)
Diesel
· Up to 1600cc – 15p per mile (no change)
· 1601 to 2000cc – 16p per mile (-1p)
· Over 2000cc – 22p per mile (-1p)
LPG
· Up to 1400cc – 11p per mile (no change)
· 1401 to 2000cc – 13p per mile (no change)
· Over 2000cc – 20p per mile (-1p)
Fully electric cars
· Home charger – 7p per mile (no change)
· Public charger – 15p per mile (no change)
Hybrid cars – use either petrol or diesel advisory fuel rates above as appropriate.
June fuel rates
These rates apply to employees using a company car for business travel and are to be used in the following circumstances:
- When reimbursing employees for business travel in their company cars
- When employees need to repay the cost of fuel used for private travel
Here are the changes to petrol, diesel, LPG and fully electric car rates:
Petrol
· Up to 1400cc – 14p per mile (+2p)
· 1401 to 2000cc – 17p per mile (+3p)
· Over 2000cc – 26p per mile (+4p)
Diesel
· Up to 1600cc – 15p per mile (+3p)
· 1601 to 2000cc – 17p per mile (+4p)
· Over 2000cc – 23p per mile (+5p)
LPG
· Up to 1400cc – 11p per mile (+1p)
· 1401 to 2000cc – 13p per mile (+1p)
· Over 2000cc – 21p per mile (+2p)
Fully electric cars
· Home charger – 7p per mile (no change)
· Public charger – 15p per mile (no change)
Hybrid cars – use either petrol or diesel advisory fuel rates above as appropriate.
March fuel rates
These rates apply to employees using a company car for business travel and are to be used in the following circumstances:
- When reimbursing employees for business travel in their company cars
- When employees need to repay the cost of fuel used for private travel
Here are the changes to petrol, diesel, LPG and fully electric car rates:
Petrol
- Up to 1400cc – 12p per mile (no change)
- 1401 to 2000cc – 14p per mile (no change)
- Over 2000cc – 22p per mile (no change)
Diesel
- Up to 1600cc – 12p per mile (no change)
- 1601 to 2000cc – 13p per mile (no change)
- Over 2000cc – 18p per mile (no change)
LPG
- Up to 1400cc – 10p per mile (-1p)
- 1401 to 2000cc – 12p per mile (-1p)
- Over 2000cc – 19p per mile (-2p)
Fully electric cars
- Home charger – 7p per mile (no change)
- Public charger – 15p per mile (+1p)
Hybrid cars– use either petrol or diesel advisory fuel rates above as appropriate.
