Change to the Advisory Fuel Rates

HMRC / Tax 

For fleets and business drivers going back to work following the COVID-19 lockdown period, a reminder that the Advisory Fuel Rates changed at the beginning of June.

The new rates are lower than before to reflect the falling price of fuel at the pumps.

The rates are used by organisations to reimburse employees for business mileage undertaken in their company cars. Alternatively, where drivers are provided with a fuel card to pay for their fuel, all private mileage can be reimbursed to the company using the Advisory Fuel Rates. This avoids punitive free fuel tax.

The Advisory Fuel Rates vary depending on the type of fuel used and the size of the engine.

Petrol rates from June 2020

1400cc or less - 10 pence (minus 2p)

1401cc to 2000cc - 12 pence (minus 2p)

Over 2000cc - 17 pence (minus 3p)

Diesel rates from June 2020

1600cc or less - 8 pence (minus 1p)

1601cc to 2000cc - 9 pence (minus 2p)

Over 2000cc - 12 pence (minus 1p)

For drivers of electric vehicles, the Advisory Electricity Rate is 4p per mile.

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