Update: Advisory fuel rates for company cars
Taking effect as of 1st September 2022, new advisory fuel rates for company cars have been published that employers need to be aware of.
The new guidance states that: ‘You can use the previous rates for up to one month from the date the new rates apply’. It’s also noted that these rates only apply to employees who are using a company car.
The new advisory fuel rates for any journeys taken on or after the 1 September are as follows:
|1400cc or less||15p|
|1401cc – 2000cc||18p|
|1400cc or less||9p|
|1401cc – 2000cc||11p|
|1600cc or less||14p|
|1601cc – 2000cc||17p|
“Guidance from HMRC have said that these rates are only to be applied when you’re either reimbursing employees for business travel or when requesting employees to repay fuel costs for any private travel” – Danielle Harvey – Harvey, Telford & Bates
In terms of electric cars, the Advisory Electricity Rate is 5p per mile. However, electricity is not a fuel for car fuel benefit purposes.
For more information on this, you can visit the Government website for more details on company car policies.