- 29th May 2019
- Posted by: Suzy Hill
- Category: Personal Tax, Business News
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 size||Petrol – amount per mile||LPG – amount per mile|
|1400cc or less||12p||8p|
|1401cc to 2000cc||15p||9p|
|Engine size||Diesel – amount per mile|
|1600cc or less||10p|
|1601cc to 2000cc||12p|
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.