Company car advisory fuel rates from 1 March 2022
7 March 2022
HM Revenue & Customs (HMRC) has announced new advisory fuel rates that can be used by employers paying employees a business mileage when driving an employer-provided car. These rates can also be used when charging employees for fuel provided for private miles and ordinary commuting.
These rates apply to all journeys on or after 1 March 2022 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.
Engine size | Petrol | LPG |
1400cc or less | 13p (previously 13p) | 8p (previously 9p) |
1401cc to 2000cc | 15p (previously 15p) | 10p (previously 10p) |
Over 2000cc | 22p (previously 22p) | 15p (previously 15p) |
Engine size | Diesel |
1600cc or less | 11p (previously 11p) |
1601cc to 2000cc | 13p (previously 13p) |
Over 2000cc | 16p (previously 16p) |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The advisory electricity rate for fully electric cars is 5p per mile. Electricity is not a fuel for car fuel benefit purposes.