New company car advisory fuel rates have been published and took effect from 1 December 2021.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 December 2021 are:

Engine sizePetrol
1400cc or less13p
1401cc – 2000cc15p
Over 2000cc22p
Engine sizeLPG
1400cc or less9p
1401cc – 2000cc10p
Over 2000cc15p
Engine sizeDiesel
1600cc or less11p
1601cc – 2000cc13p
Over 2000cc16p

HMRC guidance states that the rates only apply when you either:

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 5p per mile from 1st December 2021. Electricity is not a fuel for car fuel benefit purposes.’

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR