Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 December 2021.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 December 2021 are:

Engine size

Petrol

1400cc or less

13p

1401cc - 2000cc

15p

Over 2000cc

22p

Engine size

LPG

1400cc or less

9p

1401cc - 2000cc

10p

Over 2000cc

15p

Engine size

Diesel

1600cc or less

11p

1601cc - 2000cc

13p

Over 2000cc

16p

HMRC guidance states that the rates only apply when you either:

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 5p per mile. Electricity is not a fuel for car fuel benefit purposes.

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR

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