Last reviewed 27 May 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 June 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

14p (previously 13p)

9p (previously 8p)

1401cc to 2000cc

17p (previously 15p)

11p (previously 10p)

Over 2000cc

25p (previously 22p)

16p (previously 15p)

Engine size

Diesel

1600cc or less

13p (previously 11p)

1601cc to 2000cc

16p (previously 13p)

Over 2000cc

19p (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.