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 size | Petrol per mile | LPG per mile | Diesel per mile |
| Up to 1,400cc | 14p | 9p | – |
| 1,401cc to 2,000cc | 17p | 11p | – |
| Up to 1,600cc | – | – | 13p |
| 1,601cc to 2,000cc | – | – | 16p |
| Over 2,000cc | 25p | 16p | 19p |
Rates
- 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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