HMRC has now published the Advisory Fuel Rates from 1 September 2021, although slightly later than expected. The previous published rates can be used for up to one month from 1 September if desired.
The rates are for use for company cars where:
- The employer is reimbursing the employee for business travel.
- The employee is repaying the cost of private travel in a company car.
Where the employer meets the cost of the fuel, no fuel benefit charge will arise providing all private travel mileage is correctly recorded. The correct rate (or higher) must be used to calculate how much an employee must repay his or her employer for fuel used for private travel.
The new rates are as follows:
|Engine size||Petrol – rate per mile||LPG – rate per mile|
|1400cc or less||12 pence||7 pence|
|1401cc to 2000cc||14 pence||8 pence|
|Over 2000cc||20 pence||12 pence|
|Engine size||Diesel – rate per mile|
|1600cc or less||10 pence|
|1601cc to 2000cc||12 pence|
|Over 2000cc||15 pence|
What about electric?
The mileage rates for fully electric cars continues to be 4p per mile. For hybrid cars use either the diesel or petrol rates as appropriate.
For details of the previous rates which are reviewed each quarter (March, June, September and December) go here.