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 September 2022 are:

 

Engine size	Petrol
1400cc or less	15p
1401cc - 2000cc	18p
Over 2000cc	27p

 

Engine size	LPG
1400cc or less	9p
1401cc - 2000cc	11p
Over 2000cc	17p

 

Engine size	Diesel
1600cc or less	14p
1601cc - 2000cc	17p
Over 2000cc	22p

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 5p 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