Advisory Fuel Rates (AFRs) from 1 December 2021
They are meant to reflect actual average fuel costs at the time they are set and save time for both employers and HMRC by setting out some figures that can be used in the majority of cases. They give employers more certainty about what the mileage rates that they choose to apply mean for tax and National Insurance contributions (NICs).
The rates apply where employers:
- reimburse employees for business travel in their company cars
- require employees to repay the cost of fuel used for private travel
The rates are advisory only.
These rates apply from 1 December 2021. You can use the previous rates (shown in brackets) for up to one month from the date the new rates apply.
Petrol & LPG rates
|Engine Size (cc)||Petrol – per mile||LPG – per mile|
|1400cc or less||13 pence (12p)||9 pence (7p)|
|1401cc to 2000cc||15 pence (14p)||10 pence (8p)|
|Over 2000cc||22 pence (20p)||15 pence (12p)|
N.B. Hybrid cars are treated as either petrol or diesel cars for this purpose.
|Engine Size (cc)||Diesel – per mile|
|1600cc or less||11 pence (10p)|
|1601cc to 2000cc||13 pence (12p)|
|Over 2000cc||16 pence (15p)|
Advisory Electric Rates (AERs) from 1 December 2021
The current Advisory Electric Rate is 5p per mile