Advisory fuel rates
The price of road fuel has increased significantly in the last few months and HMRC has responded by raising all the advisory fuel mileage rates for company cars from 1 December 2021.
The price of road fuel has increased significantly in the last few months and HMRC has responded by raising all the advisory fuel mileage rates for company cars from 1 December 2021.
If you pay for the fuel in your company car your employer can reimburse you for the cost of business journeys in that car at the following mileage rates tax free:
Engine size: | Up to 1400 | 1400- 2000cc | Over 2000cc |
---|---|---|---|
Petrol | 13 p | 15p | 22p |
LPG | 8p (9p*) | 10p | 15p |
Diesel | 11p | 13p | 16p |
Electric | 5 p | 5p | 5p |
*The LPG mileage rate for the smallest cars was reduced from 1 March 2022.
As diesel engines tend to be bigger, the division between rates is set at 1600cc rather than 1400cc.