- Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
- If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.
The advisory fuel rates for journeys undertaken on or after 1 December 2018 are:
|1400cc or less||12p|
|1401cc – 2000cc||15p|
|1600cc or less||10p|
|1601cc – 2000cc||12p|
|1400cc or less||8p|
|1401cc – 2000cc||10p|
Hybrid cars are treated as either petrol or diesel cars for this purpose.
This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.