HMRC advisory fuel rates for company car users from 1 September

HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 September 2018 introducing a 4p advisory electricity rate for fully electric cars.

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

The advisory fuel rates apply from 1 September 2018 and have slightly increased on the previous quarter rates, for petrol cars with engine of 2000cc or less and diesel cars with an engine size from 1601cc to 2000cc. The previous rates can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.

Advisory fuel rates from 1 September 2018

Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 12p (11p) 7p (7p)
1401cc to 2000cc 15p (14p) 9p (9p)
Over 2000cc 22p (22p) 13p (14p)

 

Engine size Diesel – amount per mile
1600cc or less 10p (10p)
1601cc to 2000cc 12p (11p)
Over 2000cc 13p (13p)

June 2018 rate in brackets

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

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

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