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:

Engine size Petrol
1400cc or less 15p
1401cc – 2000cc 18p
Over 2000cc 27p


Engine size LPG
1400cc or less 9p
1401cc – 2000cc 11p
Over 2000cc 17p


Engine size Diesel
1600cc or less 14p
1601cc – 2000cc 17p
Over 2000cc 22p

 “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.