NEW HMRC advisory fuel rates for company car users

Published: 08/06/2022 By Hannah McCormack

Get on board with the new rates as they came into effect from 1st June 2022.

HMRC have confirmed the latest advisory fuel rates (AFR) for company car users, see tables below. The rates have been increased across the board from the March 2022 rates with a 3 pence increase on petrol vehicle over 2000cc, whilst the equivalent diesel vehicle rate goes up from 16p to 19p. LPG rates are up by 1p across all vehicles.
The previous rates from March 2022 can be used for up to one month from the date the new rates apply but we suggest using the new rates as soon as possible.

A reminder that the AFR only apply in the following circumstances:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

HMRC also confirmed that the advisory electricity rate for fully electric cars remains at 5p per mile.

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.

NEW Advisory fuel rates from 1 June 2022

Engine sizePetrol - amount per mile (previous)LPG - amount per mile (previous)
1400cc or less14p (13p)9p (8p)
1401cc to 2000cc17p (15p)11p (10p)
Over 2000cc25p (22p)16p (15p)

Engine sizeDiesel - amount per mile
1600cc or less13p (11p)
1601cc to 2000cc16p (13p)
Over 2000cc19p (16p)

Hybrid cars are treated as either petrol or diesel cars for this purpose.

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