HMRC update to Advisory Fuel Rates

HMRC have issued an update to their Advisory Fuel Rates, taking effect from 1 December 2021.

Dated: 25 November 2021 Author: James Hunt, Employment Services Senior Manager

Car being filled with fuel

In the table below HMRC show an increase on the previous rates, reflecting the upward trend in fuel prices. It also includes an uplift in the electric car rate, which has been increased from 4p to 5p per mile.

The rates can be used to reimburse employees who have undertaken business travel in company cars, or for employees to reimburse the cost of private fuel where provided by the employer. If a rate in excess of the HMRC rate is paid for business travel the excess will be subject to tax and NIC, unless it can be demonstrated that the fuel cost per mile for a specific vehicle is higher than the HMRC rates.

For hybrid cars you can use the rate that applies to the petrol or diesel support engine.

Fuel Table

Take Action Now

Please contact us to discuss the challenges you are facing and the solutions available to you by calling 0845 555 8844 or simply complete our enquiry form. Don’t wait, take advice now, we are here to help you.