For VAT reclaims and mileage claims

Fuel advisory rates are used to calculate the amount of VAT a company can reclaim relating to the fuel element of the mileage allowance payments. These rates are also used for mileage claims when an individual has a company car but pays for fuel privately

These advisory fuel rates apply to all journeys on or after 1st December 2021 until further notice. For one month from the date of the change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Advisory Fuel Rates from 1st December 2021

These rates apply from 1st December 2021. You can use the previous rates for up to 1 month from the date the new rates apply.

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Engine sizePetrol - amount per mileLPG - amount per mileDiesel - amount per mile
1400cc or less139
1401cc - 2000cc1510
1600cc or less11

1600cc - 2000cc13
Over 2000cc221516

The Advisory Electricity Rate for fully electric cars is 5 pence per mile.

Electricity is not a fuel for car fuel benefit purposes.

Please note: mileage allowance payments for the use of private cars for business purposes should be made at rates of 45p per mile for the first 10,000 miles per tax year and 25p thereafter.

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