Company Car Fuel Costs

discodiva224

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.

bazzyb

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.