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Home » News & Insights » Company Car Advisory Fuel Rates Increase

Company Car Advisory Fuel Rates Increase

Posted on 28th September 2021

As the result of recent increases in petrol and diesel prices, HMRC has increased the advisory fuel rates that apply for the reimbursement of employees’ private fuel for their company cars. The same rates apply when the employer reimburses employees for fuel used for business journeys in their company car.

The new rates apply from 1 September 2021, but you can continue to use the previous rates for up to 1 month from the date the new rates apply.

Where there has been a change the previous rate is shown in brackets:-

Engine SizePetrolDieselLPG
1400cc or less12p (11p) 7p
1600cc or less 10p (9p) 
1401cc to 2000cc14p (13p) 8p
1601 to 2000cc 12p (11p) 
Over 2000cc20p (19p)15p (13p)12p

You can continue to use the previous rates for up to 1 month from the date the new rates apply.  For wholly electric cars there is a 4p advisory rate.

However, for hybrid cars use the equivalent petrol or diesel rate.

Employees who have all the fuel for their company car paid for should consider reimbursing their employer for private use to avoid a private fuel benefit being charged

MJB Avanti | 08000 388799

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Filed Under: News Tagged With: Business, Business Tips, Fuel Crisis, Fuel Increase, Fuel Rates, HMRC, Tax

Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice

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