Monday, 5 October 2020

Advisory Fuel Rate for Company Cars

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 September 2020. Where there has been a change the previous rate is shown in brackets.














You can continue to use the previous rates for up to 1 month from the date the new rates apply.  For wholly electric cars there is a 4p advisory rate. However, for hybrid cars use the equivalent petrol or diesel rate. 

Where an employee is considering reimbursing their employer for private use to avoid a taxable benefit, it may be beneficial to compute the actual cost of private fuel rather than use the scale rate.


No comments:

Post a Comment