HMRC advisory fuel rates for company car users from 1 March

HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 September 2018 with a 4p advisory electricity rate for fully electric cars

The advisory electricity rate for fully electric cars is 4p per mile. Electricity is not a fuel for car fuel benefit purposes.

The advisory fuel rates apply from 1 March 2019 and have not 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 March 2019

Engine sizePetrol – amount per mileLPG – amount per mile
1400cc or less11p7p
1401cc to 2000cc14p8p
Over 2000cc21p13p

 

Engine sizeDiesel – amount per mile
1600cc or less10p
1601cc to 2000cc11p
Over 2000cc13p

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.

How can we help you?

Brearley & Co Accountants are pleased to offer a free, no obligation, initial consultation with one of our experts who will be happy to discuss your business needs and how we can help you.

Are you a new business? Or an existing business interested in our services?