ADVISORY FUEL & ELECTRIC RATES – 1 SEPTEMBER 2019

The Advisory Fuel Rates (AFR) as of 1 September,

Engine size                                         Petrol – amount per mile                             LPG – amount per mile

1400cc or less                                      12 pence                                                         8 pence

1401cc to 2000cc                                 14 pence                                                        10 pence

Over 2000cc                                          21 pence                                                        14 pence

Engine size                                         Diesel – amount per mile

1600cc or less                                      10 pence

1601cc to 2000cc                                 11 pence

Over 2000cc                                         14 pence

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

The Advisory Electric Rate (AER) which was introduced in September for 100% electric cars will remain the same at 4p per mile.  Electricity is not a fuel for car fuel benefit purposes.

The AFR and AER are deemed to be tax and National Insurance free.

Both rates can be applied for fuel per mile,

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

If your employee does not repay the private fuel used during the tax year then you will need to,

• report on their P11D
• pay Class 1A National Insurance on the value of the fuel benefit

If you travel as a result of running your business (other than home to work) and

• are unsure on what you can claim
• are considering your options regarding the company purchasing a vehicle
• want to understand the rules around company car benefits in kind
• or anything else associated with business travel

Please contact us so that we can ensure the advice you are given is specific to your circumstances on 0113 2864486

Source: HMRC