Advisory Fuel Rates for Company Cars from 1 September 2020

03 September 2020

Company car Advisory Fuel rates that apply from 1 September 2020 have been published.

HMRC has issued details of the latest Advisory Fuel Rates (AFRs) for Company Cars. Rates applied from 1 September 2020.

For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish but are under no obligation to do either.

The new rates are below (previous rate in brackets where there is a change):

Engine size



1400cc or less


7p (6p)

1401cc to 2000cc



Over 2000cc


12p (11p)

Engine size


1600cc or less


1601cc to 2000cc

10p (9p)

Over 2000cc


Hybrid cars are treated as either petrol or diesel cars for this purpose.

The latest update to the guidance page also includes information on how rates are calculated where the mean miles per gallon (MPG)  were produced using the New European Driving Cycle (NEDC) or the Worldwide Harmonized Light Vehicle Test (WLTP).


Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.