New advisory fuel rates for company car drivers

HMRC has published new advisory fuel rates for company car drivers, which will apply from 1 September 2020. These rates can be used by employers wishing to pay their employees the cost of fuel for business journeys in company cars (where the employee pays for all fuel costs), or where the employer pays for all fuel, for reimbursement of private mileage by company car drivers.

A few points to note:

  • These rates should be used in relation to cars, not vans
  • Hybrid cars can be treated as either petrol or diesel cars for this purpose
  • For fully electric cars, an Advisory Electricity Rate has been introduced, however, electricity is not a fuel for car fuel benefit purposes


Engine size Petrol Diesel LPG Electric*
1,400cc or less 10p   7p 4p
1,600cc or less   8p   4p
1,401cc to 2,000cc 12p   8p 4p
1,601cc to 2,000cc   10p   4p
Over 2,000cc 17p 12p 12p 4p


*Fully electric cars only

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