Guidance

Advisory fuel rates

Find out about advisory fuel rates for company car users, when you can use them, and how they're calculated.

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

You must not use these rates in any other circumstances.

Reimburse employees for company car business travel

If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.

If your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation.

If you pay rates that are higher than the advisory rates but cannot show the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.

Employees to repay the cost of fuel used for private travel

There will be no fuel benefit charge if you correctly record all private travel mileage and use the correct rate (or higher), to work out how much your employees must repay you for fuel used for private travel.

You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.

How rates are calculated

HMRC review rates quarterly on:

  • 1 March
  • 1 June
  • 1 September
  • 1 December

The mean miles per gallon (MPG) is taken from manufacturers’ information, taking into account annual sales to businesses (Fleet Audits average 2018 to 2020). Where the:

  • manufacturer’s MPG figure was produced using the New European Driving Cycle (NEDC) test, it is adjusted down by 15% to take account of real driving conditions
  • MPG figure is produced from the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) test, introduced in 2018, no adjustment is made

For liquefied petroleum gas (LPG), the MPG used is 20% lower than for petrol due to lower volumetric energy density.

The ‘rates per mile’ calculated in these tables are shown rounded to one decimal place, but the final advisory fuel rates are rounded to the nearest whole penny.

Rates per mile which end in 0.5 are rounded down to the nearest whole penny for the advisory fuel rate when the underlying unrounded figure ends in a number less than 0.5 (for example 0.487).

When the underlying unrounded figure ends in a number greater than 0.5 (for example 0.513) it is rounded up to the nearest whole penny.

The latest petrol and diesel prices are taken from the Department for Business, Energy and Industrial Strategy and the LPG (UK average) is from the Automobile Association website.

The advisory electric rate for fully electric cars is calculated using electrical price data from the Department for Business, Energy and Industrial Strategy and electrical consumption rates from the Department for Transport. It accounts for annual sales to businesses (Fleet Audits average 2018 to 2020).

The advisory fuel rates are worked out from the fuel prices in these tables.

Petrol

Engine size (cc) Mean MPG Applied MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1400 54.2 52.7 165.1 pence 750.5 pence 14.2 pence 14 pence
1401 to 2000 46.1 44.9 165.1 pence 750.5 pence 16.7 pence 17 pence
Over 2000 30.8 30.0 165.1 pence 750.5 pence 25.0 pence 25 pence

Diesel

Engine size (cc) Mean MPG Applied MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1600 65.4 63.6 179.7 pence 816.8 pence 12.8 pence 13 pence
1601 to 2000 52.9 51.3 179.7 pence 816.8 pence 15.9 pence 16 pence
Over 2000 43.5 42.1 179.7 pence 816.8 pence 19.4 pence 19 pence

LPG

Engine size (cc) Mean MPG Applied MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1400 43.3 42.2 86.8 pence 394.6 pence 9.4 pence 9 pence
1401 to 2000 36.9 35.9 86.8 pence 394.6 pence 11.0 pence 11 pence
Over 2000 24.7 24.0 86.8 pence 394.6 pence 16.4 pence 16 pence

Rates

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.

From 1 June 2022

You can use the previous rates for up to 1 month from the date the new rates apply.

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 14 pence 9 pence
1401cc to 2000cc 17 pence 11 pence
Over 2000cc 25 pence 16 pence
Engine size Diesel — rate per mile
1600cc or less 13 pence
1601cc to 2000cc 16 pence
Over 2000cc 19 pence

From 1 March 2022 to 31 May 2022

You can use the previous rates for up to 1 month from the date the new rates apply.

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 13 pence 8 pence
1401cc to 2000cc 15 pence 10 pence
Over 2000cc 22 pence 15 pence
Engine size Diesel — rate per mile
1600cc or less 11 pence
1601cc to 2000cc 13 pence
Over 2000cc 16 pence

From 1 December 2021 to 28 February 2022

You can use the previous rates for up to 1 month from the date the new rates apply.

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 13 pence 9 pence
1401cc to 2000cc 15 pence 10 pence
Over 2000cc 22 pence 15 pence
Engine size Diesel — rate per mile
1600cc or less 11 pence
1601cc to 2000cc 13 pence
Over 2000cc 16 pence

From 1 September 2021 to 30 November 2021

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 12 pence 7 pence
1401cc to 2000cc 14 pence 8 pence
Over 2000cc 20 pence 12 pence
Engine size Diesel — rate per mile
1600cc or less 10 pence
1601cc to 2000cc 12 pence
Over 2000cc 15 pence

From 1 June 2021 to 31 August 2021

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 11 pence 8 pence
1401cc to 2000cc 13 pence 9 pence
Over 2000cc 19 pence 14 pence
Engine size Diesel — rate per mile
1600cc or less 9 pence
1601cc to 2000cc 11 pence
Over 2000cc 13 pence

1 March 2021 to 31 May 2021

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 10 pence 7 pence
1401cc to 2000cc 12 pence 8 pence
Over 2000cc 18 pence 12 pence
Engine size Diesel — rate per mile
1600cc or less 9 pence
1601cc to 2000cc 11 pence
Over 2000cc 12 pence

1 December 2020 to 28 February 2021

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 10 pence 7 pence
1401cc to 2000cc 11 pence 8 pence
Over 2000cc 17 pence 12 pence
Engine size Diesel — rate per mile
1600cc or less 8 pence
1601cc to 2000cc 10 pence
Over 2000cc 12 pence

1 September 2020 to 30 November 2020

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 10 pence 7 pence
1401cc to 2000cc 12 pence 8 pence
Over 2000cc 17 pence 12 pence
Engine size Diesel — rate per mile
1600cc or less 8 pence
1601cc to 2000cc 10 pence
Over 2000cc 12 pence

1 June 2020 to 31 August 2020

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 10 pence 6 pence
1401cc to 2000cc 12 pence 8 pence
Over 2000cc 17 pence 11 pence
Engine size Diesel — rate per mile
1600cc or less 8 pence
1601cc to 2000cc 9 pence
Over 2000cc 12 pence

Find rates from an earlier date.

Published 21 July 2020
Last updated 25 May 2022 + show all updates
  1. The advisory fuel rates from 1 June 2022 have been added.

  2. The advisory fuel rates from 1 March 2022 have been added.

  3. The advisory fuel rates from 1 December 2021 have been added.

  4. The advisory fuel rates from 1 September 2021 have been added.

  5. The advisory fuel rates from 1 June 2021 have been added.

  6. The advisory fuel rates from 1 March 2020 have been added.

  7. The advisory fuel rates from 1 December 2020 have been added and information on how the advisory fuel rates are calculated has been updated.

  8. The advisory fuel rates from 1 September 2020 have been added. Information has also been updated on how rates are calculated where the mean miles per gallon were produced using the New European Driving Cycle or the Worldwide Harmonized Light Vehicle Test Procedure.

  9. First published.