HMRC has confirmed new fuel advisory rates for company car drivers, with the quarterly update taking effect from June 1. The rates apply only to employees who drive a company car and are reviewed four times a year.
Under the updated advisory fuel rates, petrol cars with engines up to 1400cc are now set at 14p per mile. Drivers of petrol cars between 1401cc and 2000cc face a rate of 17p per mile, while vehicles above 2000cc are rated at 26p per mile.
Diesel, LPG and electric rates
Diesel rates have also been revised. Company car drivers with diesel engines of 1600cc or less are charged 15p per mile, those with engines between 1601cc and 2000cc are charged 17p per mile, and vehicles above 2000cc are set at 23p per mile.
For LPG-powered cars, the rates are 11p per mile for engines up to 1400cc, 13p per mile for engines between 1401cc and 2000cc, and 21p per mile for engines above 2000cc.
Electric vehicle drivers using home chargers can claim 7p per mile, while those using public chargepoints are entitled to 15p per mile.
How the rates are calculated
HMRC reviews the rates quarterly on March 1, June 1, September 1 and December 1. Although the underlying rates per mile are calculated to one decimal place, the final advisory fuel rates are rounded to the nearest whole penny.
Rounding follows a specific rule: rates per mile ending in 0.5 are rounded down when the underlying unrounded figure ends in a number less than 0.5, such as 0.487. When the underlying figure ends in a number greater than 0.5, for example 0.513, the rate is rounded up to the nearest penny.
Data sources
The latest petrol and diesel prices are taken from the Department for Energy Security and Net Zero (DESNZ), while the LPG UK average comes from the Automobile Association website.
