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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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