Advisory Fuel rates from 1 September 2019

Posted by karengray - September 3, 2019 3:02 pm Advisory Fuel Rates from 1 September 2019

New Advisory Fuel Rates

New rates apply from 1 September 2019.  You can use the previous rates for up to one month from the date the new rates apply.

Petrol

Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 12 pence 8 pence
1401cc to 2000cc 14 pence 10 pence
Over 2000cc 21 pence  14 pence

Diesel

Engine size Diesel – amount per mile
1600cc or less  10 pence
1601cc to 2000cc 11 pence
Over 2000cc 14 pence

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

Advisory Electricity Rate

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

Electricity is not a fuel for car benefit purposes.

Employee vehicles: Mileage Allowance Payments (MAPs)

Mileage Allowance Payments (MAPs) are what you pay your employee for using their own vehicle for business journeys.  You’re allowed to pay your employee a certain amount of  MAPs each year without having to report them to HMRC.  This is called an ‘approved amount’.

To calculate the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.

You can use HMRC’s MAPs working sheet should you need more help.

Tax: rates per business mile

Type of vehicle First 10,000 miles Above 10,000 miles
Cars and vans 45p 25p
Motorcycles 24p 24p
Bikes 20p 20p

Example:

Your employee travels 12,000 business miles in their car – the approved amount for the year would be £5,000 (10,000 x 45p plus 2,000 x 25p).

What to report and pay

Anything above the ‘approved amount’

You must:

  • report on form P11D
  • add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal

Anything below the ‘approved amount’

You won’t have to report to HMRC or pay tax, but:

  • your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount
  • you can make separate optional reports to HMRC of any such unused balances under a scheme called the Mileage Allowance Relief Optional Reporting Scheme (MARORS) – contact HMRC to join the scheme

More details on advisory fuel rates can be found on HMRC’s website.

Alternatively, contact your local MFW office.

We have offices conveniently located across Kent in Ashford, Cranbrook, Dover, Herne Bay, Maidstone and Sittingbourne.  Do call and  speak to our tax teams who will be delighted to help you.