HMRC Advisory Fuel Rates are reviewed every three months on 01 March, 01 June, 01 September and 01 December. By way of a reminder, the advisory fuel rates are provided by HMRC for employers to apply where they:
- Reimburse employees for business travel in their company cars, or
- Require employees to repay the cost of fuel used for private travel in company cars
The below rates are for 01st September 2019. When new rates are announced, employers may choose to:
- Implement the new rates immediately or use the old rate for up to one further month, and
- Make, or require employees to make supplementary payments, if the new rates cannot be applied immediately, although there is no obligation to do so
HMRC documents the way in which the rates are calculated. They are based on average fuel consumption for the different engine sizes, reduced by 15% to make the figures more realistic.
From 1 September 2018 the government also confirmed a new electric car rate of 4p per mile (HMRC opinion is Electricity is not a fuel for car fuel benefit purposes).
| Engine size | Petrol - amount per mile | LPG - amount per mile |
| 1400cc or less | 12 pence | 8 pence |
| 1401cc to 2000cc | 14 pence | 10 pence |
| Over 2000cc | 21 pence | 14 pence |
| Engine size | Diesel - amount per mile |
| 1600cc or less | 10 pence |
| 1601cc to 2000cc | 11 pence |
| Over 2000cc | 14 pence |
