Hull: 01482 224763
Pocklington: 01759 305165
  • slider-1.jpg
  • slider-2.jpg
  • slider-3.jpg
  • slider-4.jpg

helping you unlock your potential

Latest News

Finance Bill 2019-20 shelved
05/11/2019 - More...
The Government’s draft finance...

What is a negligible value claim?
05/11/2019 - More...
A negligible value claim is a claim made...

Employing someone to work in your home
05/11/2019 - More...
When you employ someone to work in your...

Search News

New advisory fuel rates published

Source: HM Revenue & Customs | | 03/09/2019

Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel. HMRC accepts there is no taxable profit and no Class 1A National Insurance on reimbursed travel expenses where employers pay a rate per mile for business travel no higher than the published advisory fuel rates.

Employees can also use the advisory fuel rates to repay the cost of fuel used for private travel. In this case, HMRC will accept there’s no fuel benefit charge. The advisory rates are not binding if you the employer can demonstrate that employees cover the full cost of private fuel by repaying at a lower rate per mile.

The latest advisory fuel rates became effective on 1 September 2019. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. You can use the previous rates for up to 1 month from the date the new rates apply.

The new rates are as follows:

 

Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less   12p 8p
1401cc to 2000cc    14p 10p
Over 2000cc    21p  14p

 

 

Engine size   Diesel – amount per mile
1600cc or smaller       10p
1601cc to 2000cc    11p
Over 2000cc       14p

 

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

Advisory Electricity Rate

HMRC accepts that if you pay up to 4p per mile when reimbursing your employees for business travel in a fully electric company car there is no profit. While electricity is not considered a fuel for tax and NICs purposes, the Advisory Electricity Rate is now published quarterly alongside the other advisory fuel rates.



Hull Office

1 Parliament Street
Hull
East Yorkshire
HU1 2AS
Tel: 01482 224763
Fax: 01482 214874

Pocklington Office

12 Pavement
Pocklington
YO42 2AX
Tel: 01759 305165
Fax: 01759 305985

Membership

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login