- 2nd December 2020
- Posted by: Suzy Hill
- Category: Personal Tax, Business News
HMRC advisory fuel rates from 1 December 2020
HMRC have published company car advisory fuel rates for use from 1 December 2020.
Information on how the advisory fuel rates are calculated has also been updated.
The rates apply when employers reimburse employees for the cost of fuel for business travel in their company cars or require employees to repay the cost of fuel used for private travel. HMRC review rates quarterly on 1 March, 1 June, 1 September and 1 December.
The advisory fuel rates are worked out from the fuel prices in these tables.
Petrol
| Engine size (cc) | Mean MPG | Applied MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory fuel rate |
|---|---|---|---|---|---|---|
| Up to 1400 | 57.0 | 52.7 | 112.3 pence | 510.7 pence | 9.7 pence | 10 pence |
| 1401 to 2000 | 48.2 | 44.6 | 112.3 pence | 510.7 pence | 11.5 pence | 11 pence |
| Over 2000 | 32.7 | 30.3 | 112.3 pence | 510.7 pence | 16.9 pence | 17 pence |
Diesel
| Engine size (cc) | Mean MPG | Applied MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory fuel rate |
|---|---|---|---|---|---|---|
| Up to 1600 | 71.3 | 65.9 | 117.1 pence | 532.2 pence | 8.1 pence | 8 pence |
| 1601 to 2000 | 57.9 | 53.4 | 117.1 pence | 532.2 pence | 10.0 pence | 10 pence |
| Over 2000 | 49.8 | 45.8 | 117.1 pence | 532.2 pence | 11.6 pence | 12 pence |
LPG
| Engine size (cc) | Mean MPG | Applied MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory fuel rate |
|---|---|---|---|---|---|---|
| Up to 1400 | 45.6 | 42.2 | 65.0 pence | 295.5 pence | 7.0 pence | 7 pence |
| 1401 to 2000 | 38.5 | 35.7 | 65.0 pence | 295.5 pence | 8.3 pence | 8 pence |
| Over 2000 | 26.2 | 24.2 | 65.0 pence | 295.5 pence | 12.2 pence | 12 pence |
The advisory electricity rate for fully electric cars is 4 pence per mile.
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.
You can use the previous rates for up to 1 month from the date the new rates apply.
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.