Advisory fuel rates for company cars

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Luke Mudd | 17th June 2022

Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 June 2022.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2022 are:

 

Engine size

Petrol

1400cc or less

14p

1401cc - 2000cc

17p

Over 2000cc

25p

 

Engine siz

LPG

1400cc or less

9p

1401cc - 2000cc

11p

Over 2000cc

16p

 

Engine size

Diesel

1600cc or less

13p

1601cc - 2000cc

16p

Over 2000cc

19p

 

HMRC guidance states that the rates only apply when you either:

  • reimburse employees for business travel in their company cars
  • require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 5p per mile. Electricity is not a fuel for car fuel benefit purposes.

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR