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Company Car Fuel Costs

Hi all, I have a company car and a fuel card. I used to pay 11p a mile now I pay 12p a mile for my fuel. The car is hybrid so it is now working out that it costs less to fuel it than I am being charged cos sometimes it does miles using no fuel. Can my company charge me more for fuel than I actually use privately? Thanks.

Comments

  • bazzyb
    bazzyb Posts: 1,586 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Yes, the advisory rates are set for petrol, diesel and LPG. There is nothing specific for hybrid:
    https://www.gov.uk/guidance/advisory-fuel-rates

    If you were to pay less than the advisory rate, you would potentially be liable for a tax increase by way of a fuel benefit charge, unless your employer can demonstrate that you “cover the full cost of private fuel by repaying at a lower mileage rate” - which may be difficult for them to demonstrate when the costs are so variable. 
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