AI company car rates

HMRC has updated its advisory fuel rates for fuel costs when using company cars. These have increased slightly from 1 June 2022, due to the continuing increase in fuel costs.

You can use the previous rates for up to 1 month from the date the new rates apply. The latest rates are as follows:

Engine sizePetrol per mileLPG per mileDiesel per mile
Up to 1,400cc14p9p
1,401cc to 2,000cc17p11p
Up to 1,600cc13p
1,601cc to 2,000cc16p
Over 2,000cc25p16p19p



  • The advisory electricity rate for fully electric cars is 5 pence per mile.
  • Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.


You can use the rates when you either:

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

You can find more information on advisory fuel rates on the Gov.UK website.

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