HM Revenue & Customs (HMRC) has announced new advisory fuel rates that can be used by employers paying employees a business mileage when driving an employer-provided car. These rates can also be used when charging employees for fuel provided for private miles and ordinary commuting.

These rates apply to all journeys on or after 1 December 2019 until further notice. For one month from the date of change, employers may use either the previous or new current rates as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Engine size

Petrol

LPG

1400cc or less

12p (previously 12p)

8p (previously 8p)

1401cc to 2000cc

14p (previously 14p)

9p (previously 10p)

Over 2000cc

21p (previously 21p)

14p (previously 14p)

Engine size

Diesel

1600cc or less

9p (previously 10p)

1601cc to 2000cc

11p (previously 11p)

Over 2000cc

14p (previously 14p)

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

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

Last reviewed 28 November 2019