HMRC fuel rates

HMRC Advisory Fuel Rates

Applicable from 1 March 2022

What you need to know

These rates apply to all journeys on or after 1 March 2022. 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 8p 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 December 2021 to 28 February 2022 were:

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 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.

The latest update to the above rates, although less than two weeks old, is not in line with, or keeping pace with spiralling forecourt prices. Businesses that use the Advisory Fuel Rates (AFRs) should keep in mind that the rates are only ‘advisory’. It is permissible to apply differing rates to the AFRs, to reflect higher fuel prices.

This will apply particularly to petrol and diesel. Businesses that wish to implement a rate that is higher than HMRCs published rates, should ensure that supporting calculations are made and preserved for future reference, and/or inspection by HMRC. It also follows, that forecourt prices should be actively monitored and the rates amended in line with any fluctuations/reductions in fuel price.


Contact us

Dinesh Jangra
Dinesh Jangra
Partner, Global Practice Leader for Global Mobility
London