Advisory fuel rates from 1 June 2021

fuel rates from 1 December 2021

From 1 June 2021, the advisory fuel rates to be used by employees when claiming back mileage using a company car are as follows:

Engine sizePetrol – rate per mileLPG – rate per mile
1400cc or less11 pence8 pence
1401cc to 2000cc13 pence9 pence
Over 2000cc19 pence14 pence
Engine sizeDiesel – rate per mile
1600cc or less9 pence
1601cc to 2000cc11 pence
Over 2000cc13 pence

These rates should also be used where an employee needs to repay the cost of fuel used in private travel.

The advisory electric rate for fully electric cars is 4p per mile. Hybrid cars are treated as either diesel or petrol for advisory fuel rates.

The previous advisory fuel rates can be used up to 30 June 2021 if desired.

If you have any queries on company mileage or would like to discuss employer taxation issues more widely, please contact [email protected] or call 01527 558539.

HMRC has further guidance on using advisory fuel rates and how they are calculated.