New company car advisory fuel rateshave been published and took effect from 1 December 2021.
The guidance states: ‘you can use the previous rates for up to one month from the date thenew rates apply’. The rates only apply to employees using a company car.
The advisory fuel rates for journeysundertaken on or after 1 December 2021 are:
Petrol
- 1400cc or less - 13p
- 1401cc - 2000cc - 15p
- Over 2000cc - 22p
LPG
- 1400cc or less - 9p
- 1401cc - 2000cc - 10p
- Over 2000cc - 15p
Diesel
- 1600cc or less - 11p
- 1601cc - 2000cc - 12p
- Over 2000cc -16p
HMRC guidance states that the rates only apply when you either:
- reimburse employees for business travel in their company cars or
- require employees to repay the cost of fuel used for private travel.
You must not use these rates in any other circumstances.
The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.
If you would like to discuss your car policy, please contact us.
