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 September 2019 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.

Advisory Fuel Rates from 1 September 2019

These rates apply from 1 September 2019. 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 - 2000cc1410
1600cc or less10
1600cc - 2000cc11
Over 2000cc211414

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

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.

Share article
Share article

Latest news and articles

  • 11 October 2019

The latest IR35 case law

If you are ever investigated by HMRC and employment status is found between your company and your end customer, th...

  • 04 July 2019

Barn Dance Success

We at Pillow May would like to again say a HUGE thank you to all who came or supported ou...

  • 01 July 2019

A humbling tour to Cambodia

The Pillow May team visited Cambodia for a team development trip and to visit Free to Shi...