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Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 March 2021. 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 2021 are:

Engine size Petrol

1400cc or less 10p

1401cc - 2000cc 12p

Over 2000cc 18p

Engine size LPG

1400cc or less 7p

1401cc - 2000cc 8p

Over 2000cc 12p

Engine size Diesel

1600cc or less 9p

1601cc - 2000cc 11p

Over 2000cc 12p

HMRC guidance states that the rates only apply when you either:

  • reimburse employees for business travel in their company cars

  • require employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.

If you would like to discuss your car policy, please contact us.

For more information visit: GOV.UK AFR

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Yousuf Siddiqui
Yousuf Siddiqui
Apr 05, 2021

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