Advisory fuel rate for company cars October 2021

Advisory fuel rate for Company Cars October 2021

As the result in recent increases in petrol and diesel prices HMRC have increased the advisory fuel rates that apply for the reimbursement of employees’ private fuel for their company cars. The same rates apply when the employer reimburses employees for fuel used for business journeys in their company car.

The new rates apply from 1 September 2021, but you can continue to use the previous rates for up to 1 month from the date the new rates apply.

Where there has been a change the previous rate is shown in brackets:-

Engine Size Petrol Diesel LPG
1400cc or less 12p


1600cc or less 10p


1401cc to 2000cc 14p


1601 to 2000cc 12p (11p)
Over 2000cc 20p






You can continue to use the previous rates for up to 1 month from the date the new rates apply.  For wholly electric cars there is a 4p advisory rate.

However, for hybrid cars use the equivalent petrol or diesel rate.

Employees who have all the fuel for their company car paid for should consider reimbursing their employer for private use to avoid a private fuel benefit being charged.

Need more information?

Do you have a company car and need more support with the advisory fuel rate for Company Cars? We offer a wide range of services which are unique to your business, Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

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