Advisory fuel rate for company cars – June 2022:
Unbelievably there were very few changes to the HMRC advisory fuel rates from 1 March 2022, which may not have been your experience at the filling station!
Now that the increased prices have fed through into the HMRC calculations there are some significant increases from 1 June 2022, as set out in the table below.
In cases where the employee pays for the car fuel, these mileage rates should be used by the employer to reimburse the employee for business journeys.
In cases where the employer pays for the car fuel, these mileage rates should be used by the employee to reimburse the employer for private mileage, if they want to avoid a fuel benefit in kind arising.
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 14p (13p) | 9p (8p) | |
| 1600cc or less | 13p (11p) | ||
| 1401cc to 2000cc | 17p (15p) | 11p (10p) | |
| 1601 to 2000cc | 16p (13p) | ||
| Over 2000cc | 25p (22p) | 19p (16p) | 16p (15p) |
Where there has been a change, the previous rate is shown in brackets. The previous rate can continue to be used until 30 June 2022, if so desired.
Note that for hybrid cars the appropriate petrol or diesel rate should be used.
Need more information?
Do you need further guidance on the Advisory fuel rate for company cars? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.
Our fantastic team at A&C Chartered Accountants are here to help.
