Increases to HMRC advisory fuel rates from 1 June 2022

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HMRC has published the latest advisory fuel rates for company car users, effective from 1 June 2022. Rates have increased by between one and three pence per mile in light of soaring fuel prices.

These rates apply to employees using a company car for business travel and are to be used in the following circumstances:

  • When reimbursing employees for business travel in their company cars; or
  • When employees need to repay the cost of fuel used for private travel

Note that these rates are not the applicable rates for employees using their own personal vehicles!

New rates are as follows:

Petrol

  • Up to 1400cc: 14p per mile (+1p)
  • 1401 to 2000cc: 17p per mile (+2p)
  • Over 2000cc: 25p per mile (+3p)

Diesel

  • Up to 1600cc: 13p per mile (+2p)
  • 1601 to 2000cc: 16p per mile (+3p)
  • Over 2000cc: 19p per mile (+3p)

The rates for hybrid cars depend on the fuel used as above.

If employees using company cars are paid different rates, a tax charge may arise. For further information, please call Ellis & Co accountants in Chester on 01244 343504.