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Company Cars
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03-06-2019

The advisory fuel rates apply from 1 June 2019 have increased by 1p per mile in most categories reflecting the increase in petrol and diesel prices over the last quarter. The previous rates, effective March 2019, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

The advisory electricity rate for fully electric cars is 4p per mile. Electricity is not a fuel for car fuel benefit purposes.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.


Advisory fuel rates from 1 June 2019

Engine size

Petrol - amount per mile

LPG - amount per mile

1400cc or less

12p

8p

1401cc to 2000cc

15p

9p

Over 2000cc

22p

14p

 

Engine size

Diesel - amount per mile

1600cc or less

10p

1601cc to 2000cc

12p

Over 2000cc

14p

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

To view the HMRC web site click here.


24-04-2019

The tax treatment for low emision cars is reducing dramatically from 2020-2021.
For mor information on car benefits click here

CO2 emissions
Electric Range Appropriate percentage
Petrol Hybrid Diesel Hybrid
g/Km Miles % %
0 All (Pure Electric) 2% 2%
0 to 50 130 or more 2% 6%
0 to 50 70 to 120 5% 9%
0 to 50 40 to 69 8% 12%
0 to 50 30 to 39 12% 16%
0 to 50 Less than 30 14% 18%

25-02-2019

The advisory electricity rate for fully electric cars is 4p per mile. Electricity is not a fuel for car fuel benefit purposes.

The advisory fuel rates apply from 1 March 2019 and have not increased on the previous quarter rates. The previous rates can be used for up to one month from the date the new rates apply.  The rate can be found by clicking here.

The rates only apply in the following circumstances:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.

Advisory fuel rates from 1 March 2019

Engine size

Petrol - amount per mile

LPG - amount per mile

1400cc or less

11p

7p

1401cc to 2000cc

14p

8p

Over 2000cc

21p

13p

 

Engine size

Diesel - amount per mile

1600cc or less

10p

1601cc to 2000cc

11p

Over 2000cc

13p

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.


05-12-2018

HMRC has published the new rates applicable to employees using company cars which come into effect from 1 December 2018 as follows:

Engine size              Petrol - amount per mile    LPG - amount per mile
1400cc or less         12 pence                                8 pence
1401cc to 2000cc    15 pence                              10 pence
Over 2000cc             22 pence                            15 pence
       
    Deisel - amount per mile   
1600cc or less         10 pence   
1601cc to 2000cc    12 pence   
Over 2000cc            14 pence   
       
To view the HMRC full list click here.

09-08-2018

HMRC has published the new rates applicable to employees using company cars which come into effect from 1 June 2018 as follows:

Engine size              Petrol - amount per mile    LPG - amount per mile
1400cc or less         11 pence                              7 pence
1401cc to 2000cc    14 pence                              9 pence
Over 2000cc             22 pence                            14 pence
       
    Deisel - amount per mile   
1600cc or less         10 pence   
1601cc to 2000cc    11 pence   
Over 2000cc            13 pence   
       
To view the HMRC full list click here.

04-12-2017

HMRC has published the new rates applicable to employees using company cars which come into effect from 1 December 2017 as follows:

Advisory Fuel Rates from 1 December 2017
Engine sizePetrol - amount per mileLPG - amount per mile
1400cc or less 11 pence 7 pence
1401cc to 2000cc 14 pence 9 pence
Over 2000cc 21 pence 14 pence
To view the HMRC full list click here.

28-02-2017

The rates which employers can use to reimburse employees who pay to put petrol in their company cars when they are using them for business have been updated. These rates apply to all journeys undertaken on or after 1 MARCH 2017 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose.

03-01-2017

The rates which employers can use to reimburse employees who pay to put petrol in their company cars when they are using them for business have been updated. These rates apply to all journeys undertaken on or after 1 December 2016 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose.

12-06-2015

The rates which employers can use to reimburse employees who pay to put petrol in their company cars when they are using them for business have been updated. These rates apply to all journeys undertaken on or after 1 June 2015 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose.

04-03-2015

The rates which employers can use to reimburse employees who pay to put petrol in their company cars when they are using them for business have been updated. These rates apply to all journeys undertaken on or after 1 March 2015 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose.


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