CARS - 08.06.2020

Advisory fuel rates fall significantly

New rates. HMRC has updated its advisory fuel rates (AFRs) for company cars from 1 June 2020. The old rates (shown in brackets in the table below) can be used until 30 June 2020. To avoid a car fuel benefit charge, employers and employees can compensate each other at the appropriate AFR for the cost of fuel paid for by the other. Because there’s wide variation in fuel prices across the UK you may prefer to work out your own fuel rates. HMRC will accept these as long as they are reasonable

Engine size Electric per mile Petrol per mile LPG per mile Diesel per mile
Up to 1,400cc - 10p (12p) 6p (8p) -
1,401cc to 2,000cc - 12p (14p) 8p (10p) -
Up to 1,600cc - - - 8p (9p)
1,601cc to 2,000cc - - - 9p (11p)
Over 2,000cc - 17p (20p) 11p (14p) 12p (13p)
N/A (4p) - - -

HMRC’s advisory fuel rates fell significantly on 1 June 2020. You can work out and use your own rates if HMRC’s don’t reasonably reflect the fuel prices in your area.

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