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Advisory Fuel Rates For Company Cars

The new company car advisory fuel rates, which take effect from 1 December 2021, have been published by HMRC.

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

Engine SizePetrol
1400cc or less13p
1401cc - 2000cc15p
Over 2000cc22p
Engine SizeLPG
1400cc or less9p
1401cc - 2000cc10p
Over 2000cc15p
Engine SizeDiesel
1600cc or less11p
1601cc - 2000cc13p
Over 2000cc16p

The advisory electricity rate for reimbursing employees for business travel in fully electric company cars will increase to 5 pence per mile and hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

The rates only apply when you either:

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

You must not use these rates in any other circumstances.

The previous rates, which you can find here, can still be used for up to 1 month from the date the new rates apply.

If you have any queries regarding company cars, or mileage reimbursement, please email our Taxperts or call one of our offices.

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