From 1 December, the advisory fuel rates to be used by employees when claiming back mileage using a company car are as follows:
|Engine size||Petrol – rate per mile||LPG – rate per mile|
|1400cc or less||10 pence||7 pence|
|1401cc to 2000cc||11 pence||8 pence|
|Over 2000cc||17 pence||12 pence|
|Engine size||Diesel – rate per mile|
|1600cc or less||8 pence|
|1601cc to 2000cc||10 pence|
|Over 2000cc||12 pence|
These rates should also be used where an employee needs to repay the cost of fuel used in private travel.
The advisory electric rate for fully electric cars is 4p per mile. Hybrid cars are treated as either diesel or petrol for advisory fuel rates.
The previous advisory fuel rates can be used up to 31 December 2020 if desired.
HMRC has further guidance on business mileage rates and how they are calculated.