Company cars - fuel rates fall

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HMRC’s advisory fuel rates have dropped.

The new rates, which began on March 1, 2019 only apply when you:

  • Reimburse employees for business travel in their company cars
  • Require employees to repay the cost of fuel used for private travel*

The rates for almost all cars and vans has fallen, diesel cars of up to 1,600cc and fully electric cars remain unchanged.

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

Note: You can use your own rates which better reflect your circumstances if, for example, your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates.*

For further information on company cars or any other tax matter contact Peter Way-Rider, tax manager at Ellis & Co Chartered Accountants and Business Advisers on 01244 343504.

*Figures from HMRC