New company car advisory fuel rates have been published and took effect from 1 March 2022.
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 March 2022 are:
Engine size |
Petrol |
1400cc or less |
13p |
1401cc - 2000cc |
15p |
Over 2000cc |
22p |
Engine size |
LPG |
1400cc or less |
8p |
1401cc - 2000cc |
10p |
Over 2000cc |
15p |
Engine size |
Diesel |
1600cc or less |
11p |
1601cc - 2000cc |
13p |
Over 2000cc |
16p |
Reimburse employees for business travel in their company carsHMRC 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