Advisory fuel rates will stay the same for the quarter beginning 1 December 2022, except for fully electric vehicles where the rate will increase to 8p per mile.
The rate for electric cars will be 8p per mile and hybrid cars are treated as petrol or diesel for these purposes. This last minute increase reflects the higher electricity costs faces by energy consumers throughout the country.
Advisory fuel rates are used in the following circumstances:
- to reimburse employees for business travel in their company cars; or
- to require employees to repay the cost of fuel used for private travel.
Further details are laid out below:
Advisory fuel rates from 1 December 2022:
From 1 December 2022
|Engine size||Petrol — rate per mile||LPG — rate per mile|
|1400cc or less||14 pence||10 pence|
|1401cc to 2000cc||17 pence||12 pence|
|Over 2000cc||26 pence||18 pence|
|Engine size||Diesel — rate per mile|
|1600cc or less||14 pence|
|1601cc to 2000cc||17 pence|
|Over 2000cc||22 pence|
For more information on fuel rates for company cars, please see https://www.gov.uk/guidance/advisory-fuel-rates
If you have any questions regarding your company car or any other TAX queries, please contact the IN Team