Advisory Fuel Rates Print

No taxable benefit will arise where an employee pays for all fuel used in a company provided car and is reimbursed for the cost of fuel used for business mileage. This is subject to the amount reimbursed not exceeding the advisory fuel-only mileage rate. It may be possible for the employer to negotiate higher rates if the circumstances warrant them.

The tables below set out the amounts that may be reimbursed without a tax charge arising on the employee, or the amount the employee needs to reimburse to the company for his private mileage where the employer pays for all fuel:

From 1 March 2021

Cylinder capacity of car Fuel Cost (Pence Per Mile)
Diesel Petrol LPG
 1,400cc or less  9 10 7
 1,401cc to 1,600cc 9 12 8
 1,601cc to 2,000cc 11 12 8
Over 2,000cc 12 18 12

From 1 December 2020 to 29 February 2021

Cylinder capacity of car Fuel Cost (Pence Per Mile)
Diesel Petrol LPG
 1,400cc or less  8 10 7
 1,401cc to 1,600cc 8 11 8
 1,601cc to 2,000cc 10 11 8
Over 2,000cc 12 17 12

From 1 September 2020 to 30 November 2020

Cylinder capacity of car Fuel Cost (Pence Per Mile)
Diesel Petrol LPG
 1,400cc or less 8 10 7
 1,401cc to 1,600cc 8 12 8
 1,601cc to 2,000cc 10 12 8
Over 2,000cc 12 17 13

From 1 June 2020 to 31 August 2020

Cylinder capacity of car Fuel Cost (Pence Per Mile)
Diesel Petrol LPG
 1,400cc or less 8 10  6
 1,401cc to 1,600cc 8 12  8
 1,601cc to 2,000cc 10 12  8
Over 2,000cc 12 17  11

From 1 March 2020 to 31 May 2020

Cylinder capacity of car Fuel Cost (Pence Per Mile)
Diesel Petrol LPG
 1,400cc or less 9 12  8
 1,401cc to 1,600cc 9 14  10
 1,601cc to 2,000cc 11 14  10
Over 2,000cc 13 20  14

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