Advisory fuel rates
These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 September 2020. Where there has been a change the previous rate is shown in brackets.
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 10p | 7p (6p) | |
| 1600cc or less | 8p | ||
| 1401cc to 2000cc | 12p | 8p
(9p) |
|
| 1601 to 2000cc | 10p (9p) | ||
| Over 2000cc | 17p | 12p | 12p
(11p) |
You can continue to use the previous rates for up to 1 month from the date the new rates apply. For wholly electric cars there is a 4p advisory rate. However, for hybrid cars use the equivalent petrol or diesel rate.
Thus, where an employee is considering reimbursing their employer for private use to avoid a taxable benefit, it may be beneficial to compute the actual cost of private fuel rather than use the scale rate.
Need more information?
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