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 or
• 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.