Advisory Fuel Rates for Company Cars

Advisory Fuel Rates for Company Cars

HMRC has published the latest advisory fuel rates for company car users effective from 1 September 2018, which also sees the introduction of the advisory electricity rate for electric cars at 4p per mile.

Hybrid cars are treated as either petrol or diesel cars for this purpose and electricity is not a fuel for car fuel benefits.

The new rates are:


                                        Amount per mile
Engine size Petrol      Diesel      LPG      Electric*       
1400cc or less 12p   7p 4p
1600cc or less   10p   4p
1401cc to 2000cc                 15p   9p 4p
1601cc to 2000cc   12p   4p
Over 2000cc 22p 13p 13p 4p

*Fully electric cars only


The old rates can be used up to 30th September 2018.

The rates only apply:


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



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