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Gerry MacCrossan

ADVISORY FUEL RATE FOR COMPANY CARS


Surprisingly there were very few changes to the HMRC advisory fuel rates from 1 March 2022, which may not have been your experience at the filling station!

Now that the increased prices have fed through into the HMRC calculations there are some significant increases from 1 June 2022, as set out in the table below.

In cases where the employee pays for the car fuel, these mileage rates should be used by the employer to reimburse the employee for business journeys.

In cases where the employer pays for the car fuel, these mileage rates should be used by the employee to reimburse the employer for private mileage, if they want to avoid a fuel benefit in kind arising.

Where there has been a change, the previous rate is shown in brackets. The previous rate can continue to be used until 30 June 2022.

You should take note that the appropriate fuel rate should be used for hybrid cars.