HMRC advisory fuel rates for company car users from 1 September 2021

Fuel

HMRC has published the latest advisory fuel rates for company car users, which see mileage rates increase by at least 1p for all petrol and diesel vehicles. 

 

Effective from 1 September 2021, the advisory fuel rates for petrol and diesel vehicles with engines of 1400-2000cc has increased by 1p, while 2000cc diesel vehicles will see a 2p increase to 15p per mile.

 

 

The previous rates, effective from 1 June 2021, can be used for up to one month from the date the new rates apply.

 

The new rates from September 2021 are:   

Engine Size

Petrol (per mile)

LPG (per mile)

1400cc or less

12p

7p

1401cc to 2000cc

14p

8p

Over 2000cc

20p

12p

 

Engine Size

Diesel (per mile)

1600cc

10p

1601cc to 2000cc

12p

Over 2000cc

15p

 

These rates only apply to employees using a company car to either reimburse them for business travel in the car or when an employee needs to repay the cost of fuel used for private travel.

 

Hybrid cars are treated as either petrol or diesel cars. Electricity is not a fuel for car fuel benefit purposes. 

 

The advisory fuel rate will next be updated on 1 December 2021. 

 

 

Blog post uploaded 31 Aug 2021