The advisory fuel rates that apply from 1 June 2021 have been increased by 1p per mile for petrol and diesel vehicles with engines of 1400-2000cc reflecting a slight increase in fuel prices over the last quarter. The previous rates, effective March 2021, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

• reimburse employees for business travel in their company cars; or
• require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.