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 20192018 to 2021).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:

• from the Department for Business, Energy &and Industrial Strategy
• Office forand National Statistics
• electrical consumption rates from the Department for Transport

Transport. It takesaccounts intofor account annual sales to businesses (Fleet Audits average 20192018 to 2021).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	51.954.2	174.252.7	165.1 pence	791.9750.5 pence	15.314.2 pence	1514 pence
1401 to 2000	44.146.1	174.244.9	165.1 pence	791.9750.5 pence	18.016.7 pence	1817 pence
Over 2000	28.830.8	174.230.0	165.1 pence	791.9750.5 pence	27.525.0 pence	2725 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	60.765.4	185.263.6	179.7 pence	841.8816.8 pence	13.912.8 pence	1413 pence
1601 to 2000	49.852.9	185.251.3	179.7 pence	841.8816.8 pence	16.915.9 pence	1716 pence
Over 2000	38.843.5	185.242.1	179.7 pence	841.8816.8 pence	21.719.4 pence	2219 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	41.543.3	83.742.2	86.8 pence	380.5394.6 pence	9.29.4 pence	9 pence
1401 to 2000	35.336.9	83.735.9	86.8 pence	380.5394.6 pence	10.811.0 pence	11 pence
Over 2000	23.024.7	83.724.0	86.8 pence	380.5394.6 pence	16.516.4 pence	1716 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 SeptemberJune 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	1514 pence	9 pence
1401cc to 2000cc	1817 pence	11 pence
Over 2000cc	2725 pence	1716 pence

Engine size	Diesel — rate per mile
1600cc or less	1413 pence
1601cc to 2000cc	1716 pence
Over 2000cc	2219 pence

From 1 JuneMarch 2022 to 31 AugustMay 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	1413 pence	98 pence
1401cc to 2000cc	1715 pence	1110 pence
Over 2000cc	2522 pence	1615 pence

Engine size	Diesel — rate per mile
1600cc or less	1311 pence
1601cc to 2000cc	1613 pence
Over 2000cc	1916 pence

From 1 MarchDecember 20222021 to 3128 MayFebruary 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	89 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 DecemberSeptember 2021 to 2830 FebruaryNovember 20222021

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	1312 pence	97 pence
1401cc to 2000cc	1514 pence	108 pence
Over 2000cc	2220 pence	1512 pence

Engine size	Diesel — rate per mile
1600cc or less	1110 pence
1601cc to 2000cc	1312 pence
Over 2000cc	1615 pence

From 1 SeptemberJune 2021 to 3031 NovemberAugust 2021

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1211 pence	78 pence
1401cc to 2000cc	1413 pence	89 pence
Over 2000cc	2019 pence	1214 pence

Engine size	Diesel — rate per mile
1600cc or less	109 pence
1601cc to 2000cc	1211 pence
Over 2000cc	1513 pence

From 1 JuneMarch 2021 to 31 AugustMay 2021

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1110 pence	87 pence
1401cc to 2000cc	1312 pence	98 pence
Over 2000cc	1918 pence	1412 pence

Engine size	Diesel — rate per mile
1600cc or less	9 pence
1601cc to 2000cc	11 pence
Over 2000cc	1312 pence

1 MarchDecember 20212020 to 3128 MayFebruary 2021

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	1817 pence	12 pence

Engine size	Diesel — rate per mile
1600cc or less	98 pence
1601cc to 2000cc	1110 pence
Over 2000cc	12 pence

1 DecemberSeptember 2020 to 2830 FebruaryNovember 20212020

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	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 SeptemberJune 2020 to 3031 NovemberAugust 2020

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	10 pence	76 pence
1401cc to 2000cc	12 pence	8 pence
Over 2000cc	17 pence	1211 pence

Engine size	Diesel — rate per mile
1600cc or less	8 pence
1601cc to 2000cc	109 pence
Over 2000cc	12 pence

Find rates from an earlier date.