New Advisory Fuel Rates were published by HM Revenue & Customs (HMRC) on 24th August 2022. These only apply to employees using company car. These rates can also be used when charging employees for fuel provided for private miles and ordinary commuting.
Hybrid cars are treated as either petrol or diesel cars for this purpose. The advisory electricity rate for fully electric cars is 5p per mile. Electricity is not a fuel for car fuel benefit purposes.
These rates apply to all journeys on or after 1 September 2022 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose.
If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.
Employers may therefore make or require supplementary payments if they so wish but are under no obligation to do either.
| Engine size | Petrol | LPG |
| 1400cc or less | 15p (previously 14p) | 9p (previously 9p) |
| 1401cc to 2000cc | 18p (previously 17p) | 11p (previously 11p) |
| Over 2000cc | 27p (previously 25p) | 17p (previously 16p) |
| Engine size | Diesel |
| 1600cc or less | 14p (previously 13p) |
| 1601cc to 2000cc | 17p (previously 16p) |
| Over 2000cc | 22p (previously 19p) |