HMRC fuel rates

HMRC Advisory Fuel Rates

Applicable from 1 December 2021

What you need to know

These rates apply to all journeys on or after 1 December 2021. For one month from the date of change, employers may use either the previous or new current rates. Employers may make or require supplementary payments (but are under no obligation to do either).

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.

The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.

Engine size Petrol LPG Engine size Diesel
1400cc or less 13p 9p 1600cc or less 11p
1401cc to 2000cc 15p 10p 1601cc to 2000cc 13p
Over 2000cc 22p 15p Over 2000cc 16p

The previous rates from 1 September 2021 2020 to 30 November 2021 were:

Engine size Petrol LPG Engine size Diesel
1400cc or less 12p 7p 1600cc or less 10p
1401cc to 2000cc 14p 8p 1601cc to 2000cc 12p
Over 2000cc 20p 12p Over 2000cc 15p

The above rates only apply where employers:

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

Where an employee uses their own car for business journeys, the Approved Mileage Allowance Payments should be used. These rates have not changed and remain at:

  • 45p a mile for the first 10,000 business miles
  • 25p a mile thereafter.

Contact us

Andy Hamman
Andy Hamman
Director, Employment Tax
London