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
Over 2,000cc 22p 15 16p

 

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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