HMRC advisory fuel rates for company car users from 1 December 2022

Peninsula Blog

December 01 2022

HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 December 2022, with a rise in the electric car rate

The advisory fuel rates that apply from 1 December 2022 have decreased by 1p for all petrol engine sizes and increased by 1p for LPG vehicles compared with the September 2022 rates. 

The equivalent diesel vehicle rate for vehicles under 2000cc and those over 2000cc remain unchanged.

The previous rates, effective September 2022, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

From 1 December 2022 the advisory fuel rate for fully electric cars will rise from 5 pence to 8 pence per mile. In line with advisory fuel rates, this electric rate will also be reviewed quarterly from 1 December 2022.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.

Advisory fuel rates from 1 December 2022

Engine size

Petrol - amount per mile (previous)

LPG - amount per mile (previous)

1400cc or less

14p (15p)

10p (9p)

1401cc to 2000cc

17p (18p)

12p (11p)

Over 2000cc

26p (27p)

18p (17p)


Engine size

Diesel - amount per mile

Up to 1600cc

14p (14p)

1601cc to 2000cc

17p (17p)

Over 2000cc

22p (22p)

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

If you have questions on the treatment of expenses, visit BrAInbox today where you can find answers to questions like Should allowances be included in holiday pay?

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