Advisory Fuel Rates March 2018

Posted by jonathanfullarton - May 28, 2019 12:28 pm Advisory Fuel Rates from 1 June 2019

New Advisory Fuel Rates

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

Petrol

Engine sizePetrol – amount per mileLPG – amount per mile
1400cc or less12 pence8 pence
1401cc to 2000cc15 pence9 pence
Over 2000cc22 pence 14 pence

Diesel

Engine sizeDiesel – amount per mile
1600cc or less 10 pence
1601cc to 2000cc12 pence
Over 2000cc14 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.

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 vehicleFirst 10,000 milesAbove 10,000 miles
Cars and vans45p25p
Motorcycles24p24p
Bikes20p20p

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.