HMRC advisory fuel rates for company car users from 1 June

HMRC has published the latest advisory fuel rates (AFR) 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 advisory fuel rates apply from 1 June 2019 have increased by 1p per mile in most categories reflecting the increase in petrol and diesel prices over the last quarter. 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.

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.

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 sizePetrol – amount per mileLPG – amount per mile
1400cc or less12p8p
1401cc to 2000cc15p9p
Over 2000cc22p14p

 

Engine sizeDiesel – amount per mile
1600cc or less10p
1601cc to 2000cc12p
Over 2000cc14p

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.

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