HMRC advisory fuel rates for company car users from 1 December

HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 December 2018

The advisory fuel rates apply from 1 December 2018 and have slightly 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.

Advisory fuel rates from 1 December 2018

Engine sizePetrol – amount per mileLPG – amount per mile
1400cc or less12p (12p)8p (7p)
1401cc to 2000cc15p (15p)10p (9p)
Over 2000cc22p (22p)15p (13p)

 

Engine sizeDiesel – amount per mile
1600cc or less10p (10p)
1601cc to 2000cc12p (12p)
Over 2000cc14p (13p)

September 2018 rate in brackets

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

Advisory Electricity Rate

The Advisory Electricity Rate for fully electric cars is 4 pence per mile.

Electricity is not a fuel for car fuel benefit purposes.

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

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