Advisory fuel rates for company cars

7th December 2021 | News

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 5p 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

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

News

Government considers 5 day isolation period

Calls to cut isolation period Chancellor Rishi Sunak has backed calls for a 5 day isolation period, meaning that the current Covid isolation period could be cut from seven days to five. Currently, those who test positive for Covid can leave self-isolation after seven...

Are you prepared for the expansion of Making Tax Digital for VAT?

MTD for VAT On 1st April 2022 it becomes mandatory for all VAT registered businesses to register for Making Tax Digital (MTD) for VAT. This is a departure from the current rules where it is only compulsory for people or businesses with a turnover above the VAT...

Contact

0161 399 0121

York House, 20 York Street, Manchester, M2 3BB

0151 303 3112

Avenue HQ Liverpool, 17 Mann Island, Liverpool L3 1BP

Contact us

© Copyright 2020 Williamson & Croft LLP - Registered No OC402211