Revised advisory fuel rates from 1 September 2019

COMPANY OWNED VEHICLES

HM Revenue and Customs have announced revised tax free advisory fuel rates from 1 September 2019 which may be paid for business journeys in a car owned by the business.   Rates for the previous quarter are shown in brackets.

Engine size

Petrol

Diesel

LPG

1,400 cc or less

12p (12p)

 

8p (8p)

1,600 cc or less  

10p (10p)

 
1,401 cc to 2,000 cc

14p (15p)

 

 10p (9p)

1,601 cc to 2,000 cc  

11p (12p)

 
Over 2,000 cc

21p (22p)

14p (14p)

 14p (14p)

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

Advisory Electricity Rate

The Advisory Electricity Rate for fully electric cars is 4 pence per mile.  Electricity is not a fuel for car fuel benefit purposes.

These above rates may be used in the following circumstances:-

  1. Where employers reimburse for business travel in company cars.
  2. Where employers provide fuel for company cars but employees are required to reimburse the cost of fuel for private use.

INPUT VAT CLAIMS ON MILEAGE PAID FOR COMPANY CARS OR EMPLOYEE OWNED VEHICLES

HM Revenue & Customs will accept the above figures for claiming input VAT on fuel for company cars, provided a VAT receipt is available to cover the cost of the fuel.  They will also accept use of the above rates by the employer when calculating input VAT on the fuel element for employees using their own vehicles and claiming mileage under the tax free approved mileage rates for business travel of 45p for the first 10,000 miles and 25p thereafter.

If you have not already done so, please update any spreadsheets you may use.

If you have any queries regarding the above or require any further information please do not hesitate to contact us.