7 Mar 2022
Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel. HMRC accepts there is no taxable profit and no Class 1A National Insurance on reimbursed travel expenses where employers pay a rate per mile for business travel no higher than the published advisory fuel rates.
Employees can also use the advisory fuel rates to repay the cost of fuel used for private travel. In this case, HMRC will accept there’s no fuel benefit charge. The advisory rates are not binding if the employer can demonstrate that employees cover the full cost of private fuel by repaying at a lower rate per mile.
The latest advisory fuel rates became effective on 1 March 2022. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. You can use the previous rates for up to 1 month from the date the new rates apply.
1400cc or less - 13p/8p
1401cc to 2000cc - 15p/10p
Over 2000cc - 22p/15p
1400cc or less - 11p
1401cc to 2000cc - 13p
Over 2000cc - 16p
Will you be one of the 56,000?
Completing P11D forms to report benefits in kind
HMRC recently published the latest edition of their Trusts and Estates newsletter
From 6 April 2022 the dividend tax rate increased by 1.25%