New Advisory Fuel Rates and mileage allowances from December 1st

Latest rates show a cut in mileage rates for diesel cars with an engine of 1600cc and below by 1p per mile.

HMRC has published the latest Advisory Fuel Rates (AFR) for company car users for the fourth quarter, effective from December 1st, 2019.

There is a decrease in 1p per mile for vehicles under 1600cc reflecting cuts in diesel prices over the last quarter. The rates for a diesel company car with an engine of 1,601cc to 2,000cc stays the same – as does the rate for a diesel car with an engine over 2,000cc.

For LPG vehicles with an engine from 1,401-2,000cc, the rate decreases from 10ppm to 9ppm. LPG vehicles with an engine of 1,400cc or less will stay the same at 8ppm and LPG vehicles with an engine above 2,000cc will stay the same at 14ppm.

These full rates apply in circumstances to reimburse employees for business travel in their company cars or when employees are required to repay the cost of fuel used for private travel.

See full rates below:

Engine size

1400cc or less

1401cc to 2000cc

Over 2000cc

Petrol – amount per mile

12p

14p

21p

LPG – amount per mile

8p

9p

14p

Engine size

1600cc or less

1601cc to 2000cc

Over 2000cc

Diesel – amount per mile

9p

11p

14p

These new rates are in place until the next quarterly review on March 1st, 2020.

An easy way to keep your clients up to date automatically with new tax rates and allowances is through your own branded App.

The clients of our MyFirmsApp customers receive this information immediately via automated push notifications to their Smartphone, which we send out on the behalf of their accountant. This ensures clients of our customers are informed of the changes straight away, and their accountant didn’t need to do anything – we sent the message for them!

The App hosts a fully maintained suite of tax tables that covers not only fuel and mileage allowances, but current and historic rates and thresholds across a wide area of tax, including  Income Tax, National Insurance Contributions, Corporation Tax, Inheritance Tax and more!

They are all managed and updated in the App so your clients can find the answers they need daily – saving both you and them time and money.

To accompany the fuel rates, the automated GPS Mileage Tracker feature allows your clients to track all their business journeys and mileage thanks to state-of-the-art automatic tracking. Each journey is tracked accurately, logged in the App and ready for them to export to you and further digitalise their record keeping and set them on the right path ahead of MTD.

Click the button below to trial the App for free, discover these tax rates and see how they could benefit you and your clients.