New advisory fuel rates from 1 March 2019 for drivers of company cars have fallen for all but one class of vehicle.

The rates apply where a business is reimbursing employees for travel in a company car, or where employees must repay the cost of fuel used when travelling in a company car in a personal capacity.

If an employer uses these rates, HM Revenue & Customs (HMRC) will automatically recognise that there is no taxable profit or Class 1A National Insurance due.

There is a separate electricity rate for fully electric cars that is subject to different rules. The electricity rate for fully electric cars is 4p per mile.

The rules treat hybrid cars as either petrol or diesel.

Advisory fuel rates from 1 March 2019

Engine sizePetrol amount per mileLPG amount per mile
1400cc or less11p7p
1401cc to 2000cc14p8p
Over 2000cc21p13p
Engine sizeDiesel – amount per mile
1600cc or less10p
1601cc to 2000 cc11p
Over 2000cc13p

The rates will be updated next on 1 June 2019.

Link: HMRC advisory fuel rates for company car users from 1 March

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