These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 December 2020. Where there has been a change the previous rate is shown in brackets.
|1400cc or less||10p||7p
|1600cc or less||8p|
|1401cc to 2000cc||11p|
|1601 to 2000cc||10p|
For wholly electric cars there is a 4p advisory rate. However, for hybrid cars use the equivalent petrol or diesel rate. Note that for hybrid cars you must use the petrol or diesel rate.
You can continue to use the previous rates for up to 1 month from the date the new rates apply.
Thus, where an employee is considering reimbursing their employer for private use to avoid a taxable benefit, it may be beneficial to compute the actual cost of private fuel rather than use the scale rate.
January 13th, 2021