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 sizePetrol – amount per mileLPG – amount per mile
1400cc or less12p8p
1401cc to 2000cc14p10p
Over 2000cc21p14p

Engine sizeDiesel – amount per mile
1600cc or less9p
1601cc to 2000cc11p
Over 2000cc13p

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 vehicleFirst 10,000 milesAbove 10,000 miles
Cars and Vans45p25p
Motorcycles24p24p
Bikes20p20p

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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