Advisory fuel rates

When you can use the mileage rates

These rates only apply to employees using a company car.

Use the rates when you either:

• reimburse employees for business travel in their company cars
• need employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

Reimburse employees for company car business travel

If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.

If your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation.

If you pay rates that are higher than the advisory rates but cannot show the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.

Employees to repay the cost of fuel used for private travel

There will be no fuel benefit charge if you correctly record all private travel mileage and use the correct rate (or higher), to work out how much your employees must repay you for fuel used for private travel.

You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.

How rates are calculated

HMRC review rates quarterly on:

• 1 March
• 1 June
• 1 September
• 1 December

The mean miles per gallon (MPG) is taken from manufacturers’ information, taking into account annual sales to businesses (Fleet Audits average 2018 to 2020). Where the:

• manufacturer’s MPG figure was produced using the New European Driving Cycle (NEDC) test, it is adjusted down by 15% to take account of real driving conditions
• MPG figure is produced from the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) test, introduced in 2018, no adjustment is made

For liquefied petroleum gas (LPG), the MPG used is 20% lower than for petrol due to lower volumetric energy density.

The ‘rates per mile’ calculated in these tables are shown rounded to one decimal place, but the final advisory fuel rates are rounded to the nearest whole penny.

Rates per mile which end in 0.5 are rounded down to the nearest whole penny for the advisory fuel rate when the underlying unrounded figure ends in a number less than 0.5 (for example 0.487).

When the underlying unrounded figure ends in a number greater than 0.5 (for example 0.513) it is rounded up to the nearest whole penny.

The latest petrol and diesel prices are taken from the Department for Business, Energy and Industrial Strategy and the LPG (UK average) is from the Automobile Association website.

The advisory electric rate for fully electric cars is calculated using electrical price data from the Department for Business, Energy and Industrial Strategy and electrical consumption rates from the Department for Transport. It accounts for annual sales to businesses (Fleet Audits average 2018 to 2020).

The advisory fuel rates are worked out from the fuel prices in these tables.

Petrol

Engine size (cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	54.2	52.7	147.0165.1 pence	668.0750.5 pence	12.714.2 pence	1314 pence
1401 to 2000	46.1	44.9	147.0165.1 pence	668.0750.5 pence	14.916.7 pence	1517 pence
Over 2000	30.8	30.0	147.0165.1 pence	668.0750.5 pence	22.325.0 pence	2225 pence

Diesel

Engine size (cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1600	65.4	63.6	151.1179.7 pence	686.9816.8 pence	10.812.8 pence	1113 pence
1601 to 2000	52.9	51.3	151.1179.7 pence	686.9816.8 pence	13.415.9 pence	1316 pence
Over 2000	43.5	42.1	151.1179.7 pence	686.9816.8 pence	16.319.4 pence	1619 pence

LPG

Engine size (cc)	Mean MPG	Applied MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	43.3	42.2	78.286.8 pence	355.5394.6 pence	8.49.4 pence	89 pence
1401 to 2000	36.9	35.9	78.286.8 pence	355.5394.6 pence	9.911.0 pence	1011 pence
Over 2000	24.7	24.0	78.286.8 pence	355.5394.6 pence	14.816.4 pence	1516 pence

Rates

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

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

The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.

From 1 MarchJune 2022

You can use the previous rates for up to 1 month from the date the new rates apply.

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1314 pence	89 pence
1401cc to 2000cc	1517 pence	1011 pence
Over 2000cc	2225 pence	1516 pence

Engine size	Diesel — rate per mile
1600cc or less	1113 pence
1601cc to 2000cc	1316 pence
Over 2000cc	1619 pence

From 1 DecemberMarch 20212022 to 2831 FebruaryMay 2022

You can use the previous rates for up to 1 month from the date the new rates apply.

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	98 pence
1401cc to 2000cc	15 pence	10 pence
Over 2000cc	22 pence	15 pence

Engine size	Diesel — rate per mile
1600cc or less	11 pence
1601cc to 2000cc	13 pence
Over 2000cc	16 pence

From 1 SeptemberDecember 2021 to 3028 NovemberFebruary 20212022

You can use the previous rates for up to 1 month from the date the new rates apply.

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1213 pence	79 pence
1401cc to 2000cc	1415 pence	810 pence
Over 2000cc	2022 pence	1215 pence

Engine size	Diesel — rate per mile
1600cc or less	1011 pence
1601cc to 2000cc	1213 pence
Over 2000cc	1516 pence

From 1 JuneSeptember 2021 to 3130 AugustNovember 2021

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1112 pence	87 pence
1401cc to 2000cc	1314 pence	98 pence
Over 2000cc	1920 pence	1412 pence

Engine size	Diesel — rate per mile
1600cc or less	910 pence
1601cc to 2000cc	1112 pence
Over 2000cc	1315 pence

From 1 MarchJune 2021 to 31 MayAugust 2021

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1011 pence	78 pence
1401cc to 2000cc	1213 pence	89 pence
Over 2000cc	1819 pence	1214 pence

Engine size	Diesel — rate per mile
1600cc or less	9 pence
1601cc to 2000cc	11 pence
Over 2000cc	1213 pence

1 DecemberMarch 20202021 to 2831 FebruaryMay 2021

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	10 pence	7 pence
1401cc to 2000cc	1112 pence	8 pence
Over 2000cc	1718 pence	12 pence

Engine size	Diesel — rate per mile
1600cc or less	89 pence
1601cc to 2000cc	1011 pence
Over 2000cc	12 pence

1 SeptemberDecember 2020 to 3028 NovemberFebruary 20202021

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	10 pence	7 pence
1401cc to 2000cc	1211 pence	8 pence
Over 2000cc	17 pence	12 pence

Engine size	Diesel — rate per mile
1600cc or less	8 pence
1601cc to 2000cc	10 pence
Over 2000cc	12 pence

1 JuneSeptember 2020 to 3130 AugustNovember 2020

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	10 pence	67 pence
1401cc to 2000cc	12 pence	8 pence
Over 2000cc	17 pence	1112 pence

Engine size	Diesel — rate per mile
1600cc or less	8 pence
1601cc to 2000cc	910 pence
Over 2000cc	12 pence

1 MarchJune 2020 to 31 MayAugust 2020

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1210 pence	86 pence
1401cc to 2000cc	1412 pence	108 pence
Over 2000cc	2017 pence	1411 pence

Engine size	Diesel — rate per mile
1600cc or less	98 pence
1601cc to 2000cc	119 pence
Over 2000cc	1312 pence

Find rates from an earlier date.