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.