These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 September 2020. Where there has been a change the previous rate is shown in brackets.
|1400cc or less||10p||7p (6p)|
|1600cc or less||8p|
|1401cc to 2000cc||12p||8p (9p)|
|1601 to 2000cc||10p (9p)|
|Over 2000cc||17p||12p||12p (11p)|
You can continue to use the previous rates for up to 1 month from the date the new rates apply. For wholly electric cars there is a 4p advisory rate. However, for hybrid cars use the equivalent petrol or diesel rate.
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.
Source: 2020 Innovation