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.

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