Advisory fuel rates for company cars

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 size Petrol
1400cc or less 12p
1401cc - 2000cc 14p
Over 2000cc 21p
Engine size LPG
1400cc or less 8p
1401cc - 2000cc 10p
Over 2000cc 14p
Engine size Diesel
1600cc or less 10p
1601cc - 2000cc 11p
Over 2000cc 14p

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.

Internet link: GOV.UK AFR

Latest News for Business Archive

03 Sep 2019

Simplify apprenticeship funding

The Institute of Chartered Accountants in England and Wales (ICAEW) has urged the government to simplify the complexities of accessing apprenticeship funding.

03 Sep 2019

HMRC issues Customs EORI numbers

In order to try and ensure that businesses are ready to trade post-Brexit, HMRC is automatically enrolling them in the customs system.

J R Watson & Co Accountants App

Your 24/7 Accountant in your Pocket!

Download our FREE J R Watson & Co app for smart phones and tablets.