HMRC have published new advisory fuel rates for company car drivers which will apply from 1 December 2020.

The new rates are:

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	10p		7p	4p
1,600cc or less		8p		4p
1,401cc - 2,000cc	11p		8p	4p
1,601cc to 2,000.cc		10p		4p
Over 2,000cc.	17p	12p	12p	4p

* Fully electric cars only

You can continue to use the old rates up to 31 December 2020, see below.

Advisory fuel rates are set by HMRC

• Employers can use these rates to reimburse Company car drivers for business fuel.
• These rates can also be used if employees are required to repay the cost of fuel used for private travel.
• These rates should not be used in relation to vans.
• Hybrid cars can be treated as either petrol or diesel cars for this purpose.
• These amounts also apply for VAT purposes, but employers can only reclaim input VAT if the employee supplies a receipt.

On 1 December 2017, as part of the Taxation of employee expenses: Response to the call for evidence, the Government announced it had considered the position and had no plans to change the current system; particularly it would not introduce specific rates for hybrid and electric cars. However, in August 2018 HMRC announced that from 1 September 2018:

• They would accept that if employers pay up to 4 pence per mile when reimbursing employees for business travel in a fully electric company car there is no profit for income tax or earnings for NI purposes.
• Employers can use their own rate if it better reflects circumstances, for example, if their cars are more efficient, or if the cost of business travel is higher than the guideline rate. 
• If employers pay a rate that is higher than the advisory rate and cannot demonstrate the electricity cost per mile is higher, they must treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.

Rates from 1 September 2020

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	10p		7p	4p
1,600cc or less		8p		4p
1,401cc - 2,000cc	12p		8p	4p
1,601cc to 2,000.cc		10p		4p
Over 2,000cc.	17p	12p	12p	4p

* Fully electric cars only

Rates from 1 June 2020

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	10p		6p	4p
1,600cc or less		8p		4p
1,401cc - 2,000cc	12p		8p	4p
1,601cc to 2,000.cc		9p		4p
Over 2,000cc.	17p	12p	11p	4p

 * Fully electric cars only 

Rates from 1 March 2020

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	12p		8p	4p
1,600cc or less		9p		4p
1,401cc - 2,000cc	14p		10p	4p
1,601cc to 2,000.cc		11p		4p
Over 2,000cc.	20p	13p	14p	4p

* Fully electric cars only

Rates from 1 December 2019

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	12p		8p	4p
1,600cc or less		9p		4p
1,401cc - 2,000cc	14p		9p	4p
1,601cc to 2,000.cc		11p		4p
Over 2,000cc.	21p	14p	14p	4p

* Fully electric cars only

Rates from 1 September 2019

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	12p		8p	4p
1,600cc or less		10p		4p
1,401cc - 2,000cc	15p		10p	4p
1,601cc to 2,000.cc		11p		4p
Over 2,000cc.	22p	14p	14p	4p

* Fully electric cars only

Rates from 1 June 2019

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	12p		8p	4p
1,600cc or less		10p		4p
1,401cc - 2,000cc	15p		9p	4p
1,601cc to 2,000.cc		12p		4p
Over 2,000cc.	22p	14p	14p	4p

* Fully electric cars only

Rates from 1 March 2019

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	11p		7p	4p
1,600cc or less		10p		4p
1,401cc - 2,000cc	14p		8p	4p
1,601cc to 2,000.cc		11p		4p
Over 2,000cc.	21p	13p	13p	4p

* Fully electric cars only

Rates from 1 December 2018

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	12p		8p	4p
1,600cc or less		10p		4p
1,401cc - 2,000cc	15p		10p	4p
1,601cc to 2,000.cc		12p		4p
Over 2,000cc.	22p	14p	15p	4p

* Fully electric cars only

Rates from 1 September 2018

Engine size	Petrol	Diesel	LPG	Electric*
1,400cc or less	12p		7p	4p
1,600cc or less		10p		4p
1,401cc - 2,000cc	15p		9p	4p
1,601cc - 2,000cc		12p		4p
Over 2,000cc	22p	13p	13p	4p

* Fully electric cars only

Rates from 1 June 2018

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		10p
1,401cc - 2,000cc	14p		9p
1,601cc to 2,000cc		11p
Over 2,000cc	22p	13p	14p

 

Rates from 1 March 2018

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	14p		8p
1,601cc to 2,000.cc		11p
Over 2,000cc.	22p	13p	13p

 

Rates from 1 December 2017

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	14p		9p
1,601cc to 2,000.cc		11p
Over 2,000cc.	21p	13p	14p

 

Rates from 1 September 2017

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	13p		8p
1,601cc to 2,000.cc		11p
Over 2,000cc.	21p	12p	13p

 

Rates from 1 June 2017

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	14p		9p
1,601cc to 2,000.cc		11p
Over 2,000cc.	21p	13p	14p

 

Rates from 1 March 2017

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	14p		9p
1,601cc to 2,000.cc		11p
Over 2,000cc.	22p	13p	14p

 

Rates from 1 December 2016

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	14p		9p
1,601cc to 2,000.cc		11p
Over 2,000cc.	21p	13p	13p

 

Rates from 1 September 2016

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	13p		9p
1,601cc to 2,000.cc		11p
Over 2,000cc.	20p	13p	13p

 

Rates from 1 June 2016

Engine size	Petrol	Diesel	LPG
1,400cc or less	10p		7p
1,600cc or less		9p
1,401cc - 2,000cc	13p		9p
1,601cc to 2,000.cc		10p
Over 2,000cc.	20p	12p	13p

 

Rates from 1 March 2016

Engine size	Petrol	Diesel	LPG
1,400cc or less	10p		7p
1,600cc or less		8p
1,401cc - 2,000cc	12p		8p
1,601cc to 2,000.cc		10p
Over 2,000cc.	19p	11p	13p

 

Rates from 1 December 2015

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	13p		9p
1,601cc to 2,000.cc		11p
Over 2,000cc.	20p	13p	13p

 

Rates from 1 September 2015

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		7p
1,600cc or less		9p
1,401cc - 2,000cc	14p		9p
1,601cc to 2,000.cc		11p
Over 2,000cc.	21p	13p	14p

 

Rates from 1 June 2015:

Engine size	Petrol	Diesel	LPG
1,400cc or less	12p		8p
1,600cc or less		10p
1,401cc - 2,000cc	14p		9p
1,601cc to 2,000.cc		12p
Over 2,000cc.	21p	14p	14p

Rates from 1 March 2015:

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p		8p
1,600cc or less		9p
1,401cc - 2,000cc	13p		10p
1,601cc to 2,000.cc		11p
Over 2,000cc.	20p	14p	14p

Rates from 1 Dec 2014:

Engine size	Petrol	Diesel	LPG
1,400cc or less	13p		9p
1,600cc or less		11p
1,401cc - 2,000cc	16p		11p
1,601cc to 2,000.cc		13p
Over 2,000cc.	23p	17p	16p

Rates from 1 Sept 2014:

Engine size	Petrol	Diesel	LPG
1,400cc or less	14p		9p
1,600cc or less		11p
1,401cc - 2,000cc	16p		11p
1,601cc to 2,000.cc		13p
Over 2,000cc.	24p	17p	16p

Rates from 1 June 2014:

Engine size	Petrol	Diesel	LPG
1,400cc or less	14p		9p
1,600cc or less		12p
1,401cc - 2,000cc	16p		11p
1,601cc to 2,000.cc		14p
Over 2,000cc.	24p	17p	16p

Rates from 1 March 2014:

Engine size	Petrol	Diesel	LPG
1,400cc or less	14p		9p
1,600cc or less		12p
1,401cc - 2,000cc	16p		11p
1,601cc to 2,000.cc		14p
Over 2,000cc.	24p	17p	17p

Rates from 1 Dec 2013:

Engine size	Petrol	Diesel	LPG
1,400cc or less	14p		9p
1,600cc or less		12p
1,401cc - 2,000cc	16p		11p
1,601cc to 2,000.cc		14p
Over 2,000cc.	24p	17p	16p

Rates from 1 Sept 2013:

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		10p
1,600cc or less		12p
1,401cc - 2,000cc	18p		11p
1,601cc to 2,000.cc		15p
Over 2,000cc.	26p	18p	16p

Rates from 1 June 2013:

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		10p
1,600cc or less		12p
1,401cc - 2,000cc	17p		12p
1,601cc to 2,000.cc		14p
Over 2,000cc.	25p	18p	18p

Rates from 1 March 2013:

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		10p
1,600cc or less		13p
1,401cc - 2,000cc	18p		12p
1,601cc to 2,000.cc		15p
Over 2,000cc.	26p	18p	18p

Rates from 1 December 2012:

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		11p
1,600cc or less		12p
1,401cc - 2,000cc	18p		13p
1,601cc to 2,000.cc		15p
Over 2,000cc.	26p	18p	18p

Rates from 1 September 2012:

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		10p
1,600cc or less		12p
1,401cc - 2,000cc	18p		12p
1,601cc to 2,000.cc		15p
Over 2,000cc.	26p	18p	17p

Rates from 1 June 2012:

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		11p
1,600cc or less		12p
1,401cc - 2,000cc	18p		13p
1,601cc to 2,000.cc		15p
Over 2,000cc.	26p	18p	19p

Rates from 1 March 2012:

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		10p
1,600cc or less		13p
1,401cc - 2,000.cc	18p		12p
1,601cc to 2,000cc		15p
Over 2,000cc.	26p	19p	18p

Rates: 1 December 2011

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		10p
1,600cc or less		12p
1,401cc - 2,000cc	18p		12p
1,601cc to 2,000cc		15p
Over 2,000cc.	26p	18p	18p

Rates: 1 September 2011

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		11p
1,600cc or less		12p
1,401cc - 2,000 cc	18p		12p
1,601cc to 2,000cc		15p
Over 2,000cc	26p	18p	18p

Rates:  1 June 2011

Engine size	Petrol	Diesel	LPG
1,400cc or less	15p		11p
1,600cc or less		12p
1,401cc - 2,000cc	18p		13p
1,601cc to 2,000cc		15p
Over 2,000cc	26p	18p	18p

Rates 1 March 2011:

Engine size	Petrol	Diesel	LPG
1,400cc or less	14p	13p	10p
1,401cc - 2,000cc	16p	13p	12p
Over 2,000cc	23p	16p	17p

Rates 1 December 2010:

Engine size	Petrol	Diesel	LPG
1,400cc or less	13p	12p	9p
1,401cc - 2,000cc	15p	12p	10p
Over 2,000cc	21p	15p	15p

Rates  1 June 2010 to 30 November 2010

Engine size	Petrol	Diesel	LPG
1,400cc or less	12p	11p	8p
1,401cc - 2,000cc	15p	11p	10p
Over 2,000cc	21p	16p	14p

Rates 1 December 2009 to 31 May 2010:

Engine size	Petrol	Diesel	LPG
1,400cc or less	11p	11p	7p
1,401cc - 2,000cc	14p	11p	8p
Over 2,000cc	20p	14p	12p

Rates 1 July 2009 to 30 November 2009:

Engine size	Petrol	Diesel	LPG
1,400cc or less	10p	10p	7p
1,401cc - 2,000cc	12p	10p	8p
Over 2,000cc	18p	13p	12p

Earlier rates