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HMRC Advisory Fuel Rates – 25/02/2021
HMRC have updated the advisory fuel rates for company car drivers.
The mileage rates can only be used if you repay employees for business travel in their company car or if employees are needed to pay back the cost of fuel used for personal travel.
HMRC review rates quarterly on
- 1 March
- 1 June
- 1 September
- 1 December
The new fuel rates as of 1 March 2021 are as follows:
| Engine Size (cc) | Petrol | Diesel | LPG | Electric |
| Up to 1,400cc | 10p | 7p | 4p | |
| Up to 1,600cc | 9p | 4p | ||
| 1,401cc – 2,000cc | 12p | 8p | 4p | |
| 1,601cc – 2,000cc | 11p | 4p | ||
| Over 2,000cc | 18p | 12p | 12p | 4p |
The fuel rate concerning electric cars, must be fully electric, not a hybrid.
The previous used rates may be used for up to 1 month from the release date of the new fuel rates.
For employees using their own car please see below:
| First 10,000 miles | Above 10,000 miles | |
| Cars and Vans | 45p | 25p |
| Motorcycles | 24p | 24p |
At Philip Donnan & Co. we will provide all updates for the Advisory Fuel Rates as soon as HMRC do their quarterly review.