New Fuel Rates for Company Cars

The new fuel rates for company cars apply from 1st September. These rates only apply to employees using a company car and are used to reimburse employees for business travel in their company cars or when employees need to repay the cost of fuel used for private travel.

For petrol cars, rates are; 14p per mile for engines of 1,400cc or less,17p for engines between 1,401cc and 2,000cc and 27p for over 2,000cc.

Diesel rates are 15p per mile for engines up to 1,600cc, 1,601cc to 2,000cc engines are 16p and larger engines are 22p. 

LPG rates are 11p for engines of 1,400cc or less, 13p for engines up between 1,401cc and 2,000cc and 20p for engines over 2000cc. 

For fully electric company cars, the rates remain at 7p per mile for home charging and 15p for public charging. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

Rates are reviewed quarterly by HMRC and previous rates can be used for up to 1 month from the date any new rates apply.

More details can be found here.