Regular Tax Updates
& Business News

Advisory fuel rates for company cars

New company car advisory fuel rates have been published which took effect from 1 December 2018. The guidance states: 'You can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 December 2018 are:

Engine sizePetrol
1400cc or less12p
1401cc - 2000cc15p
Over 2000cc22p
Engine sizeLPG
1400cc or less8p
1401cc - 2000cc10p
Over 2000cc15p
Engine sizeDiesel
1600cc or less10p
1601cc - 2000cc12p
Over 2000cc14p

HMRC guidance states that the rates only apply when you either:

  • reimburse employees for business travel in their company cars
  • require employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

If you would like to discuss your car policy, please contact us.

Internet link: GOV.UK AFR