HMRC changes to advisory fuel rates – march 2022

Every 3 months, HMRC review the advisory fuel rates. They apply to employees using a company car if:

  • You reimburse employees for business travel
  • Or require employees to repay the cost of private travel

These are “fuel only” rates, and if you use them, you have certainty that you are claiming no more than the true cost of fuel used on business journeys and so will not be taxed on a ‘fuel benefit’.

Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

These rates apply from 1st March 2022.

Engine sizePetrol – amount per mileLPG – amount per mile
1400cc or less 13p 8p
1401cc to 2000cc 15p 10p
Over 2000cc 22p 15p
Engine size Diesel – amount per mile
1600cc or less 11p
1601cc to 2000cc 13p
Over 2000cc 16p

The advisory electricity rate for fully electric cars is 5p per mile.

Civica provide an HMRC Rate Update Service, to help businesses implement changes like these. Find out how MyExpenses can transform the management of your expenses. Or speak to your account manager to find out how to add the HMRC rate update service onto your MyExpenses account.