Advisory fuel rates for company cars

    Luke Mudd
    21st December 2022
    Home » Categories » Tax » 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 December 2022 are:

    Engine sizePetrol
    1400cc or less14p
    1401cc – 2000cc17p
    Over 2000cc26p

    Engine sizeLPG
    1400cc or less10p
    1401cc – 2000cc12p
    Over 2000cc18p

    Engine sizeDiesel
    1600cc or less14p
    1601cc – 2000cc17p
    Over 2000cc22p

    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 8p 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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