HMRC Advisory Fuel Costs

July 2019 – Electric Vehicles to have zero BiK tax rates from 2020
At DriveElectric we’re pleased that at last, the HMRC has taken notice of the advice from the fleet industry and announced that electric vehicles will have 0% Benefit in Kind company car tax rates from 2020.

September 2018 – HMRC publish advisory fuel rate for electric cars
HMRC are introducing an advisory fuel rate (AFR) of 4p per mile from 1st September for 100% electric cars. We hope that with a defined AFR electric cars will be more straightforward to implement within company car fleets.

HMRC has updated the Advisory Fuel Rates (AFRs) which apply from 1st March 2018.

AFRs apply when employees are reimbursed for business travel in their company cars, or where they are required to repay the cost of fuel used for private travel.

The following table shows the new rates as well as the previous rates in brackets. There has been an increase to petrol vehicles over 2000cc by a penny, and the two larger LPG categories have decreased by a penny. All other rates remain the same.

Engine size Petrol – amount per mile LPG – amount per mile 1400cc or less 11 pence (11p) 7 pence (7p) 1401cc to 2000cc 14 pence (14p) 8 pence (9p) Over 2000cc 22 pence (21p) 13 pence (14p) Engine size Diesel – amount per mile 1600cc or less 9 pence (9p) 1601cc to 2000cc 11 pence (11p) Over 2000cc 13 pence (13p)

Hybrid cars are treated as either petrol or diesel cars for this purpose