New Advisory Fuel Rates and mileage allowances from March 1st

Latest rates show a cut in mileage rates for petrol cars with an engine of over 2,000cc by 1p per mile.

HMRC has published the latest Advisory Fuel Rates (AFR) for company car users, effective from March 1st, 2020. There’s no change for diesel cars with an engine size of 1,600cc or less as well as 1,601cc to 2,000cc.

There is however a 1p decrease for both diesel engines over 2,000cc – dropping from 14p to 13p – and petrol engines over 2,000cc, dropping from 21p to 20p. Petrol engines of 1,400cc or less stay at 12p, while the rate for 1,401cc to 2,000c petrol cars remains at 14p.

The AFR for LPG cars with a 1,401cc to 2,000cc engine is however increasing by a penny to 10p per mile. A summary of the new rates can be found in the table below.

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




LPG – amount per mile




Engine size

1600cc or less

1601cc to 2000cc

Over 2000cc

Diesel – amount per mile




These new rates are in place until the next quarterly review on June 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.