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Advisory Fuel Rates For Company Cars

The new company car advisory fuel rates published by HMRC took effect from 1 March 2022. Despite recent record prices for petrol and diesel, their rates for all three engine-size ranges have remained the same since the last review.

The advisory fuel rates for journeys undertaken from 1 March are:

Engine SizePetrol
1400cc or less13p
1401cc - 2000cc15p
Over 2000cc22p
Engine SizeLPG
1400cc or less8p
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 when the date the new rates was applied.

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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