Business Car Mileage Rates Increase
Advisory Fuel Rates (AFRs) 1st December 2018 to 28 February 2019 rates are in...
HMRC have recently announced the latest Advisory Fuel Rates, which came into effect on December 1st, 2018.
Company car drivers in diesels over 2.0-litre engines can charge an extra 1p per mile (ppm) for any business mileage used, which initially rises from 13-14 ppm.
However, there have been no changes to the rates for petrol cars from when the rates were released back in September.
There is also a 1ppm increase for LPG (liquefied petroleum gas) vehicles with an engine of 1,400cc or less, from 7-8ppm, and for LPG vehicles with an engine from 1,600-2,000cc, from 9-10ppm. LPG vehicles with an engine above 2,000cc have also increased from 13-15ppm.
As for The Advisory Electric Rate - introduced in September 01, 2018 - remains the same at 4ppm. These rates only apply to electric vehicles and not Plug-In Electric Vehicles (PHEV’s).
How the new business mileage rates work
Diesel company car drivers can still use the previous ppm AFRs for up to one month, but once that expires, the new rates will apply.
What is a company car?
A company car is basically when the employer provides a vehicle for the employee to use. Typically, business mileage is covered in terms of the fuel, and sometimes personal mileage is also covered depending on the employer. All the maintenance repair changes are included as well i.e tyre changes, oil changes, filter changes, and the MOT if necessary. All of these are incorporated in the company car.
The updated company car business mileage rates can be seen in the tables below;
New Business Car Mileage Rates
|Petrol Company cars||Diesel Company cars||Hybrid powered company cars||Electric company cars||LPG company cars|
|Engine size 1400cc or less: 12p – unchanged||Engine size 1600cc or less: 10p – unchanged||Drivers of petrol/electric hybrid company cars should use the petrol rates.||Fully electric car – 4p||Engine size 1400cc or less: 8p – up 1p;|
|1401cc to 2000cc: 15p – unchanged||1601cc to 2000cc: 12p – unchanged||Drivers of diesel/electric hybrid cars should use the diesel rates.||1401cc to 2000cc: 12p – up 3p;|
|Over 2000cc: 22p – unchanged||Over 2000cc: 14p –up 1p||Over 2000cc: 15p – up 2p|
Previous Business car mileage rates
|Engine size||Petrol - amount per mile||LPG - amount per mile|
|1400cc or less||12 pence||7 pence|
|1401cc to 2000cc||15 pence||9 pence|
|Over 2000cc||22 pence||13 pence|
|Engine size||Diesel - amount per mile|
|1600cc or less||10 pence|
|1601cc to 2000cc||12 pence|
|Over 2000cc||13 pence|
The rates for petrol and diesel cars is the same for hybrids.
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