For VAT reclaims and mileage claims

Fuel advisory rates are used to calculate the amount of VAT a company can reclaim relating to the fuel element of the mileage allowance payments. These rates are also used for mileage claims when an individual has a company car but pays for fuel privately

These advisory fuel rates apply to all journeys on or after 1 December 2018 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

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

Advisory Fuel Rates from 1 December 2018

These rates apply from 1 December 2018. You can use the previous rates for up to 1 month from the date the new rates apply.

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

Engine sizePetrol - amount per mileLPG - amount per mileDiesel - amount per mile
1400cc or less128
1401cc - 2000cc1510
1600cc or less10
1600cc - 2000cc12
Over 2000cc221514

The Advisory Electricity Rate for fully electric cars is 4 pence per mile.
Advisory Electricity Rate

Electricity is not a fuel for car fuel benefit purposes.

Please note: mileage allowance payments for the use of private cars for business purposes should be made at rates of 45p per mile for the first 10,000 miles per tax year and 25p thereafter.

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