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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:

  1. The employer is reimbursing the employee for business travel.
  2. 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 sizePetrol – rate per mileLPG – rate per mile
1400cc or less12 pence7 pence
1401cc to 2000cc14 pence8 pence
Over 2000cc20 pence12 pence
Engine sizeDiesel – rate per mile
1600cc or less10 pence
1601cc to 2000cc12 pence
Over 2000cc15 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.

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