Search News


 

News

Lloyd & Co
Chartered Accountants

103-105 Brighton Road
Coulsdon
Surrey, CR5 2NG
020 8668 0500
This email address is being protected from spambots. You need JavaScript enabled to view it.

Source: HM Revenue & Customs | | 27/11/2018

Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel. HMRC accepts there is no taxable profit and no Class 1A National Insurance on reimbursed travel expenses where employers pay a rate per mile for business travel no higher than the published advisory fuel rates.

Employees can also use the advisory fuel rates to repay the cost of fuel used for private travel. In this case, HMRC will accept there’s no fuel benefit charge. The advisory rates are not binding if you the employer can demonstrate that employees cover the full cost of private fuel by repaying at a lower rate per mile.

The latest advisory fuel rates become effective on 1 December 2018. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. You can use the previous rates for up to 1 month from the date the new rates apply.

The rates are as follows:

Engine size   Petrol – amount per mile       LPG – amount per mile
1400cc or less    12p 8p
1401cc to 2000cc    15p 10p
Over 2000cc    22p 15p
 

Engine size Diesel – amount per mile
1600cc or smaller    10p
1601cc to 2000cc 12p
Over 2000cc    14p
   
Hybrid cars are treated as either petrol or diesel cars for this purpose.

Advisory Electricity Rate

HMRC now accepts that if you pay up to 4p per mile when reimbursing your employees for business travel in a fully electric company car there is no profit. While electricity is not considered a fuel for tax and NICs purposes, the Advisory Electricity Rate will be published quarterly alongside the other advisory fuel rates.



Latest News

Want to pay-off your student loan in full?
14/05/2019 - More...
Student Loans are part of the government’s financial support package for students in higher education in the UK.

Tax on a private pension you inherit
14/05/2019 - More...
Private pensions can be an efficient way to pass on wealth, but it is important to consider what, if any, tax will be

CGT and chattels
14/05/2019 - More...
A charge to Capital Gains Tax (CGT) usually arises after an asset is sold. However, there are special rules concerning