Advisory fuel rates are recommended reimbursement amounts for both employees and employers that reclaim for business mileage, when a company vehicle is being used, before incurring any benefit in kind liabilities for fuel.
The advisory fuel rates have been changed with effect for all journeys undertaken on or after 1 September 2016. These changes occur every quarter. The new rates are listed in the table below.
These new rates have not differed too much from the previous quarters, but those which have changed see an increase in the rate.
Hybrid cars are treated as either petrol or diesel cars for this purpose.
As electricity is not a road fuel, the car fuel benefit charge does not apply to electric charging. If an employee uses a company car, no benefit in kind arises on charging their vehicle at the workplace.
If an employer provides electricity to an employee to charge their own car, a benefit in kind arises representing the cost of the electricity used, which must be reported to HMRC. The provision by an employer of a charge point for an employee at their home also gives rise to a benefit in kind.
So, if you own an electric car and charge it at work, or you are supplied with a charging point at home by your employer then a benefit in kind will arise. However, if you are provided an electric car by your employer and charge it at work, no benefit in kind will occur, but if you charge it at home you will effectively lose out on the cost of charging the car, unless it is agreed that you will be repaid the cost of the charge through expense claims. Although this will be difficult to provide proof of the proportion of the electricity billed which was incurred as a result of charging the vehicle.