Company Car Fuel: Revised Advisory Rates

Bridal brands with sales representatives on the road should be aware of the new company car fuel rates that have been effective as of 1st June 2019. Words by Adam Bernstein

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Company Car Fuel: Revised Advisory Rates to Take Effect From 1 June 2019
Company Car Fuel: Revised Advisory Rates to Take Effect From 1 June 2019

New advisory fuel rates for employers with company car schemes, which apply to all journeys made on or after 1 June 2019, have been released by the Government.

The company car advisory fuel rates only apply where employers reimburse employees for business travel in their company cars or require employees to repay the cost of fuel used for private travel.

Read More: European Commission Calls for Clearer Online Pricing Information

Employees driving company cars are not entitled to use the advisory rates if employers reimburse them at lower rates. Such calculations should be based on actual costs incurred.

If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable due and no Class 1 NICs liability.

The new rates per mile applying from 1 June 2019, by engine size, are:

1400cc or less

12p for petrol (up from 11p) and 8p for LPG (up from 7p)

1401cc to 2000cc

15p for petrol (up from 14p) and 9p for LPG (up from 8p)

1600cc or less

10p for diesel run cars (remaining the same)

1601cc to 2000cc

12p for diesel run cars (up from 11p)

over 2000cc

22p for petrol (up from 21p), 14p for LPG (up from 13p) and 14p for diesel (up from 13p)

Hybrid cars are treated as either petrol or diesel cars for this purpose.

The Advisory Electricity Rate for fully electric cars remains at four pence per mile. However, it should be noted that electricity is not a fuel for car fuel benefit purposes.

Looking for more business news like this? Read about the consultation on changes to off-payroll working rules from April 2020.

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