New company car advisory fuel rates have been published which take effect from 1 March 2022. Despite the recent record prices for petrol and diesel and predictions of further rises, the rates have remained the same except for the rate per mile for an LPG with an engine size of 1400cc or fewer, which decreased by 1p to 8 pence per mile.

HMRC reviews the advisory fuel rates quarterly on 1 March, 1 June, 1 September, and 1 December. The rates are based on the fuel type and engine size of the company car.

The fuel rates for journeys undertaken on or after 1 March 2022 are as follows:

PETROL  
Engine size Petrol – amount per mile
1400cc or less 13p
1401cc – 2000cc 15p
Over 2000cc 22p

 

LPG  
Engine size LPG – amount per mile
1400cc or less 8p
1401cc – 2000cc 10p
Over 2000cc 15p

 

DIESEL  
Engine size Diesel – amount per mile
1600cc or less 11p
1601cc – 2000cc 13p
Over 2000cc 16p

 

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

The advisory rate for fully electric cars is 5 pence per mile. Electricity is not a fuel for car fuel benefit purposes.

The rates 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.

The previous rates, which were effective from 1 December 2021, can be used for up to one month from the date the new rates apply, so until 1 April 2022.

 

Previous rates

From 1 December 2021 to 28 February 2022

Engine size Petrol – rate per mile LPG – rate per mile
1400cc or less 13 pence 9 pence
1401cc to 2000cc 15 pence 10 pence
Over 2000cc 22 pence 15 pence
Engine size Diesel – rate per mile
1600cc or less 11 pence
1601cc to 2000cc 13 pence
Over 2000cc 16 pence

If you would like to discuss your car policy, please contact us.

Free initial meeting

Craig Walker

Tax Director, Sheffield

0114 266 7141