HMRC has published the latest advisory fuel rates (AFR) for company car users, which will apply from 1 December 2022.
The AFR for petrol, diesel and LPG vehicles will stay at the same levels as the September 2022 rates.
Meanwhile, AFR for fully electric cars will rise from 5p to 8p per mile. This electric rate will now be reviewed quarterly from 1 December 2022, alongside other mileage rates.
Hybrid cars will be treated as either petrol or diesel cars for AFR purposes.
The previous rates, effective September 2022, can be used for up to one month from the date the new rates apply.
The AFR for December 2022 are as follows:
| Advisory fuel only mileage rates | ||
| Rates per mile | ||
| Engine size | Petrol | LPG |
| 1400cc or smaller | 15p | 9p |
| 1401cc to 2000cc | 18p | 11p |
| Over 2000cc | 27p | 17p |
| Engine size | Diesel |
| 1600cc or smaller | 14p |
| 1601cc to 2000cc | 17p |
| Over 2000cc | 22p |
These rates are only applicable to employees using company cars to either reimburse them for business travel or when an employee needs to repay the cost of fuel used for private travel. Employers must not use these rates in any other circumstances.
The AFR will be updated next on 1 March 2023.
Contact us about providing benefits-in-kind.