CARS - 22.09.2020

Advisory fuel rates updated

New rates. HMRC has updated its advisory fuel rates (AFRs) for company cars from 1 September 2020. The old rates (shown in brackets in the table below) can be used until 30 September 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 of 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 (10p) 7p (6p) -
1,401cc to 2,000cc - 12p (12p) 8p (8p) -
Up to 1,600cc - - - 8p (8p)
1,601cc to 2,000cc - - - 10p (9p)
Over 2,000cc - 17p (17p) 12p (11p) 12p (12p)
N/A (4p) - - -

HMRC’s advisory fuel rates fell significantly on 1 September 2020. If you prefer you can work out and use your own rates to reflect more accurately the current fuel prices in your area.

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