Over the past few months, the price of road fuel has significantly increased. In response, HMRC has raised all advisory fuel mileage rates for company cars from the 1st of December 2021.
For those who pay for the fuel in their company car, your employer can reimburse you for the cost of business-related journeys tax-free at the following mileage rates:
| Engine Size | Up To 1400cc | 1400-2000cc | Over 200cc |
|---|---|---|---|
| Petrol | 13p | 15p | 22p |
| LPG | 8p (9p*) | 10p | 15p |
| Diesel | 11p | 13p | 16p |
| Electric | 5p | 5p | 5p |
*The LPG mileage rate for the smallest cars was reduced from the 1st of March 2022.
As diesel engines tend to be bigger, the division between rates is set at 1600cc rather than 1400cc.