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 size	Petrol
1400cc or less	13p
1401cc - 2000cc	15p
Over 2000cc	22p

Engine size	LPG
1400cc or less	9p
1401cc - 2000cc	10p
Over 2000cc	15p

Engine size	Diesel
1600cc or less	11p
1601cc - 2000cc	13p
Over 2000cc	16p

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

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

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 4p per mile. 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