Advisory fuel rates rise

HMRC has increased the advisory fuel rates by 1p from 1 June 2021 for all petrol vehicles.

Most diesel rates remain static

Diesel rates have not changed this time except for vehicles over 2,000cc, which have also increased by 1p. The current rates are shown in the table.

Petrol vehicle advisory fuel rates

Diesel vehicle advisory fuel rates

1,400cc or less

11p

1,600cc or less

9p

1,401–2,000cc

13p

1,601 –2,000cc

11p

Over 2,000cc

19p

Over 2,000cc

13p

These rates apply to employees using a company car. They can only be used when the employer reimburses employees for business travel or needs employees to repay the cost of fuel used for private travel. The advisory rate for fully electric cars is unchanged at 4p.

Using rates avoids admin

Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates. If the rates are used, the employer need not apply for a dispensation to cover the payments made.