Last Updated: November 22, 2022

Latest Advisory Fuel Rates

Author: Ian Govier

The latest advisory fuel rates,effective from 1 December 2022 have been published by HMRC and they remain unchanged from the last quarter except for electric vehicles. The equivalent diesel vehicle rate for vehicles under 2000cc and those over 2000cc also remain unchanged as do LPG rates.

The previous rates, effective from 1 September 2022, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

  • reimbursement of employees for business travel in their company cars; or
  • where employees are required to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

From 1 December 2022 the advisory fuel rate for fully electric cars will rise from 5 pence to 8 pence per mile. This electric rate will also be reviewed quarterly from 1 December 2022.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.

Click here to see current and historic rates.

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