New company car advisory fuel rates have been published which take effect from 1 March 2020. 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 March 2020 are:
| Engine size | Petrol – amount per mile | LPG – amount per mile |
| 1400cc or less | 12p | 8p |
| 1401cc to 2000cc | 14p | 10p |
| Over 2000cc | 21p | 14p |
| Engine size | Diesel – amount per mile |
| 1600cc or less | 9p |
| 1601cc to 2000cc | 11p |
| Over 2000cc | 13p |
For more information visit the UK Government’s website.
What are the advisory rates for electric cars?
The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes. Employees using a personal vehicle for company business may be reimbursed for fuel as follows:
| Type of vehicle | First 10,000 miles | Above 10,000 miles |
| Cars and Vans | 45p | 25p |
| Motorcycles | 24p | 24p |
| Bikes | 20p | 20p |
Hybrid cars are treated as either petrol or diesel.
For any advice on advisory fuel rates please contact our Payroll Bureau at payroll@ellacotts.co.uk or 01295 250401.
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