HMRC advisory fuel rates for company car users from 1 June

Fuel Rates

HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 June 2022. 

 

The rates have increased across the board between one and three pence per mile due to record high fuel prices at the pumps.

 

Engine Size

Petrol – amount per mile (previous)

LPG – amount per mile (previous)

1400cc or less

14p (13p)

9p (8p)

1401cc to 2000cc

17p (15p)

11p (10p)

Over 2000cc

25p (22p)

16p (15p)

 

 

Engine Size

Diesel – amount per mile (previous)

1600cc or less

13p (11p)

1601cc to 2000cc

16p (13p)

Over 2000cc

19p (16p)

 

 

 

 

 

 

The previous rates, effective March 2022, can be used for up to one month from the date the new rates apply.

 

The advisory electricity rate for fully electric cars remains at 5p per mile. Electricity is not a fuel for car fuel benefit purposes. Hybrid cars are treated as either petrol or diesel cars for this purpose.

 

These rates apply when an employer reimburses employees for business travel in their company car and when employees are required to repay the cost of fuel used for private travel.

 

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A National Insurance to pay.

 

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.