New company car advisory fuel rates have been published to take effect from 1 December 2021.
Petrol and diesel pence per mile rates, as well LPG rates, for all engine-size ranges have increased to reflect rising fuel prices.
The diesel rate for company cars with engine size of more than 2,000cc increases by 1p, from 15p to 16p per mile.
The rate for diesel cars to 1,600cc and from 1,601-2,000cc also increased by 1p, to 11p and 13p per mile respectively.
For petrol company cars, all three rates have all increased, with the Advisory Fuel Rates for vehicles to 1,400cc and with an engine of 1,401-2,000cc up by 1p, to 13p and 15p respectively.
Petrol company cars with an engine of more than 2,000cc have increased by 2p, from 20p to the new rate of 22p per mile.
All fuel rates have increased for LPG powered vehicles.
The new LPG reimbursement rate for vehicles up to 1,400cc is 9p, up from 7p per mile, and 10p for vehicles with an engine size of 1,401-2,000cc, up from 8p per mile.
The rate for LPG vehicles with an engine greater than 2,000cc increases by 3p, from 12p to 15p per mile.
Rates
From 1 December 2021
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.
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
For more information