HMRC Company car advisory fuel rates from 1 March 2021
Please see the HMRC link below the company car fuel advisory rates to be used as a guidance on the reimbursement of employees for business fuel.
The advisory electricity rate for fully electric cars is 4p per mile. Electricity is not a fuel for car fuel benefit purposes.
The advisory fuel rates apply from 1 March 2021. The previous rates can be used for up to one month from the date the new rates apply.
The rates only apply in the following circumstances:
• reimburse employees for business travel in their company cars; or
• require employees to repay the cost of fuel used for private travel.
These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.
When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.
Read the full story at https://www.gov.uk/guidance/advisory-fuel-rates