New Advisory Fuel Rates
A new set of Advisory Fuel Rates came into effect from the beginning of December 2019, which apply to employees who use a company car.
The rates can be used in circumstances where you are reimbursing employees for business travel in their company car or in requiring employees to repay the cost of fuel used for private journeys. If you use these rates, you will not need to seek a dispensation to cover the payments.
The new rates are:
|Engine size||Petrol – amount per mile||LPG – amount per mile||Diesel – amount per mile|
|1400cc or less||12 pence||8 pence||9 pence|
|1401cc to 2000cc||14 pence||9 pence||11 pence|
|Over 2000cc||21 pence||14 pence||14 pence|
Hybrid cars are treated as either petrol or diesel cars for the purposes of Advisory Fuel Rates.
Meanwhile, the Advisory Electricity Rate for fully electric cars is 4 pence per mile, although electricity is not considered a fuel for car fuel benefit purposes.
Businesses need to take note of these important tax changes and keep up-to-speed with any others that might be on the horizon. Speak to AGS today to find out how we can help.