Questions and Answers
New Advisory fuel rates
My employees have company cars, what are the new advisory fuel rates that they should be using to repay private fuel costs?
HMRC has published revised advisory fuel rates for company cars, applying from 1st March 2022. The rates are to be used only where employers either reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel.
These rates apply from 1st March 2022. You can use the previous rates for up to one month from the date the new rates apply.
The advisory electricity rate for fully electric cars is 5p per mile.
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
| Engine size | Petrol - amount per mile | LPG - amount per mile |
|---|---|---|
| 1400cc or less | 13p | 8p |
| 1401cc to 2000cc | 15p | 10p |
| Over 2000cc | 22p | 15p |
| Engine size | Diesel - amount per mile |
|---|---|
| 1600cc or less | 11p |
| 1601cc to 2000cc | 13p |
| Over 2000cc | 16p |
If you require any help in this area, please feel free to contact your TaxAssist Accountants office on 0800 0523 555 or enquire online here.
Date published 7 Jan 2020 | Last updated 12 Apr 2022
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.