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HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 September 2019

The advisory fuel rates apply from 1 September 2019 have decreased by 1p per mile for 1401cc to 2000cc reflecting cuts in petrol and diesel prices over the last quarter, while LPG rate for 1401cc to 2000cc vehicles has risen 1p to 10p per mile. The previous rates, effective June 2019, can be used for up to one month from the date the new rates apply.

As a reminder, the rates apply to reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel.

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

The rates from 1 September 2019 are as follows:-

Petrol

Engine Size

Petrol – amount per mile

1400cc or less

12p

1401cc to 2000cc

14p

over 2000cc

21p

Diesel

Engine Size

Diesel – amount per mile

1600cc or less

10p

1601cc to 2000cc

11p

over 2000cc

14p

LPG

Engine Size

LPG – amount per mile

1400cc or less

8p

1401cc to 2000cc

10p

over 2000cc

14p

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

There is no change in the rates of Mileage Allowance Payments for reimbursement of fuel costs for employees using their own vehicle for business journeys – these remain as 45p per mile for the first 10,000 business miles and 25p per mile thereafter.

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