CARS - 24.09.2020

New advisory rates from 1 September 2020

Back to work. With so many employees working from home during the lockdown, it is easy to overlook things like mileage allowance rates. However, with the country slowly getting back to offices and other places of work, it’s a good time to take stock of such things. The advisory rates for company-owned vehicles change on a quarterly basis.

The rates from 1 September 2020 are as follows:

Engine size Petrol LPG
1,400 cc or less 10p 7p
1,401-2,000cc 12p 8p
Over 2,000cc 17p 12p

Engine size Diesel
1,600cc or less 8p
1,601-2,000cc 10p
Over 2,000cc 12p

Pro advice. Electricity counts as a fuel, and has a special rate of 4p. However, this should only be paid if the car is 100% electric, i.e. not a hybrid.

Ensure clients don’t overlook the updates to the advisory fuel rates for company cars that came into effect on 1 September 2020.

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