Advisory fuel rates for company cars
The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1st December 2021 are:
| Engine size | Petrol |
| 1400cc or less | 13p |
| 1401cc – 2000cc | 15p |
| Over 2000cc | 22p |
| Engine size | LPG |
| 1400cc or less | 9p |
| 1401cc – 2000cc | 10p |
| Over 2000cc | 15p |
| Engine size | Diesel |
| 1600cc or less | 11p |
| 1601cc – 2000cc | 13p |
| Over 2000cc | 16p |
HMRC guidance states that the rates only apply when you reimburse employees for business travel in their company cars. Alternatively, it applies for when employees require to repay the cost of fuel used for private travel.
The guidance states these rates must not be used in any other circumstances.
The Advisory Electricity Rate for fully electric cars is 5p per mile. Electricity is not a fuel for car fuel benefit purposes.
The advisory electric rate for fully electric cars is calculated using electrical price data. This comes from the Department for Business, Energy and Industrial Strategy, and electrical consumption rates from the Department for Transport.
Laura Bright at Harvey, Telford & Bates comments on the new advisory rates:
“The new fuel advisory rates came into effect 1st December 2021, and it is now vital that businesses adhere to the rate changes. The fuel advisory rates are changed on a quarterly basis so these should be considered every quarter.
If you would like to discuss the new rates or have any queries you can get in touch with a member of our expert team.”
For assistance or to discuss car policy queries, please contact our expert team at 01743 462604 or email us at [email protected]
For more information on the fuel advisory rates, please visit the following site: GOV.UK AFR
