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 size

Petrol - amount per mile

LPG - amount per mile

1400cc or less

11p

7p

1401cc to 2000cc

14p

8p

Over 2000cc

21p

13p

 

Engine size

Diesel - amount per mile

1600cc or less

10p

1601cc to 2000cc

11p

Over 2000cc

13p

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.

Report by Amy Austin

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