A new set of Advisory Fuel Rates for the next financial quarter are now in effect as of 1 September 2020. These rates apply to any employee who uses a company car.
The following rates can be used in instances where you are reimbursing employees for business travel in their company car or where you require employees to pay back the cost of any fuel that has been used for private journeys.
If you use these rates, you will not need to seek a dispensation to cover the payments.
The new rates are:
|Engine size||Petrol – amount per mile||LPG – amount per mile||Diesel – amount per mile|
|1400cc or less||10 pence||7 pence||8 pence|
|1401cc to 2000cc||12 pence||8 pence||10 pence|
|Over 2000cc||17 pence||12 pence||12 pence|
Please be aware that you can use the previous rates for up to one month from the date that the new rates apply. Details of the previous fuel rates can be found by clicking here.
For the purpose of applying the Advisory Fuel Rates, hybrid cars will be treated as either petrol or diesel cars.
Meanwhile, the Advisory Electricity Rate for fully electric cars is four pence per mile, although electricity is not considered a fuel for car fuel benefit purposes.
Link: Advisory Fuel Rates