28 Feb

Advisory Fuel Rate for Company Cars

Megan
Megan
Advisory Fuel Rate for Company Cars

HMRC have updated the advisory fuel rates for employees reimbursing their employer for private mileage to eliminate a private fuel benefit.

There appears not to have been a significant increase in petrol and diesel prices in the period under review and as such the reimbursement rates have remained the same. The only change is to one of the LPG rates. However, we expect a change when the 1 June 2022 rates are published.

Note that where employers do not pay for fuel for company cars these same rates can be claimed by employees in respect of business mileage.

These are the HMRC suggested reimbursement rates for employees' private mileage using their company car from 1 March 2022. Where there has been a change the previous rate is shown in brackets.

Engine Size

Petrol

Diesel

LPG

1400cc or less

13p

 

8p

(9p)

1600cc or less

 

11p

 

1401cc to 2000cc

15p

 

10p

1601 to 2000cc 

 

13p

 

Over 2000cc

22p

16p

15p

Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for up to 1 month from the date the new rates apply.

For more details and rates for earlier periods see: Advisory fuel rates - GOV.UK (www.gov.uk)

Please note that the above is correct as of the 28th February 2022.