New advisory fuel rates for company car users

New advisory fuel rates from 1 March 2019 for drivers of company cars have fallen for all but one class of vehicle.

The rates apply where a business is reimbursing employees for travel in a company car, or where employees must repay the cost of fuel used when travelling in a company car in a personal capacity.

If an employer uses these rates, HM Revenue & Customs (HMRC) will automatically recognise that there is no taxable profit or Class 1A National Insurance due.

There is a separate electricity rate for fully electric cars that is subject to different rules. The electricity rate for fully electric cars is 4p per mile.

The rules treat hybrid cars as either petrol or diesel.

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 2000 cc

11p

Over 2000cc

13p

The rates will be updated next on 1 June 2019.

Link: HMRC advisory fuel rates for company car users from 1 March

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