Payroll Legislation

What is the Advisory Fuel Rate?

Legislation

What is the Advisory Fuel Rate?

Due Date

1 March 2020

Summary

These rates only apply to employees using a company car:

Engine sizePetrol – amount per mile LPG – amount per mile
1400cc or less12 pence8 pence
1401cc to 2000cc14 pence10 pence
Over 2000cc20 pence14 pence
EngineDiesel - amount per mile
1600cc or less9 pence
1601cc to 2000cc11 pence
Over 2000cc13 pence

These rates apply from 1 March 2020. You can use the previous rates for up to one month from the date the new rates apply. Hybrid cars are treated as either petrol or diesel cars for this purpose.

New Advisory Electricity Rate for All Electric Vehicles

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

Making payroll & HR easy