HMRC has published the latest advisory fuel rates (AFR) for company car users, which see mileage rates increase by at least 1p for most petrol and diesel vehicles.
Effective from 1 September 2022, the AFR for petrol and diesel vehicles with engines of 1400-2000cc has increased by 1p while 2000cc vehicles will see an increase of 2p for petrol and 3p for diesel engines.
The previous rates, effective from 1 June 2022, can be used for up to one month from the date the new rates apply.
The new rates for September 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 in the car 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 December 2022.
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