NEW rates for company car drivers claiming back fuel costs from their employer have come into effect from 01 June 2022.
Known as the Advisory Fuel Rates (AFRs), fleet drivers can use AFRs for fuel reimbursement costs without incurring punitive fuel tax.
However, HM Revenue and Customs (HMRC) only reviews the rates quarterly. It was criticised for this in March when its rates were based on past price performance rather than the suddenly escalating cost of fuel, but made not move to alter the rates. With cost of fuel still increasing, these latest AFR rates may also leave fleet drivers out of pocket.
The new set of AFRs sees rates increased by as much as 3p per mile to reflect higher costs at the filling station forecourts. Rates for petrol cars have increased by between 1p-3p per mile depending on engine size, while diesel cars have seen increases, of either 2p or 3p per mile.
Drivers of hybrid vehicles should use either the petrol or diesel rates as appropriate.
Latest Advisory Fuel Rates
| Diesel engine size (cc) | Advisory Fuel Rate |
| Up to 1,600cc | 13 pence |
| 1,601cc – 2,000 cc | 16 pence |
| Over 2,000cc | 19 pence |
| Petrol engine size (cc) | Advisory Fuel Rate |
| Up to 1,400cc | 14 pence |
| 1,401cc – 2,000 cc | 17 pence |
| Over 2,000cc | 25 pence |
Latest Advisory Electric Rate
| Electric | Advisory Electric Rate |
| All models | 5 pence |
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