Advisory fuel rates for company cars

    Luke Mudd
    5th September 2022
    Home » Categories » Business » Advisory fuel rates for company cars

    New company car advisory fuel rates have been published and took effect from 1 September 2022.

    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 1 September 2022 are:

     

    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

     

    HMRC guidance states that the rates only apply when you either:

    • reimburse employees for business travel in their company cars
    • require employees to repay the cost of fuel used for private travel.

    You must not use these rates 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.

    If you would like to discuss your company car policy, please contact us.

    Internet link: GOV.UK AFR

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