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company car fuel rates

New company car fuel rates

New company car fuel rates, which took effect from 1 March 2019, have been published. The guidance states: “You can use the previous rates for up to one month from the date the new rates apply” – so you must have ensured you change your company car rates by 1 April. The rates only apply to employees using a company car.

The advisory company car fuel rates for journeys undertaken on or after 1 March 2019 are:

Engine size – Petrol

1400cc or less – 11p

1401cc – 2000cc – 14p

Over 2000cc – 21p

Engine size – LPG

1400cc or less – 7p

1401cc – 2000cc – 8p

Over 2000cc – 13p

Engine size – Diesel

1600cc or less – 10p

1601cc – 2000cc – 11p

Over 2000cc – 13p

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

Advisory Electricity Rate

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

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

If company car rates are something you need to ensure that you build into your bookkeeping, you would like to discuss your car policy, please don’t hesitate to get in touch with us at The Hollies.