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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.

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 13p 15p 22p
LPG 8p (9p*) 10p 15p
Diesel 11p 13p 16p
Electric 5p 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.

This article is from the latest issue of our A Matter of Tax Newsletter. To receive future copies of any of our newsletters directly to your inbox please visit our preference centre and register your interest.

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