HMRC has again updated its advisory fuel rates for fuel costs when using company cars. As expected, the rates that apply from 1 December 2021 have increased slightly due to the recent 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||13p||9p||–|
|1,401cc to 2,000cc||15p||10p||–|
|Up to 1,600cc||–||–||11p|
|1,601cc to 2,000cc||–||–||13p|
- 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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