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:
|1400cc or less||13p|
|1401cc - 2000cc||15p|
|1400cc or less||9p|
|1401cc - 2000cc||10p|
|1600cc or less||11p|
|1601cc - 2000cc||13p|
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.