Last reviewed 6 December 2021

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 December 2021 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



1400cc or less

13p (previously 12p

9p (previously 7p)

1401cc to 2000cc

15p (previously 14p)

10p (previously 8p)

Over 2000cc

22p (previously 20p)

15p (previously 12p)

Engine size


1600cc or less

11p (previously 10p)

1601cc to 2000cc

13p (previously 12p)

Over 2000cc

16p (previously 15p)

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.