HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 June 2022, increasing rates between one and three pence per mile in light of soaring fuel prices at forecourts
The advisory fuel rates that apply from 1 June 2022 have been increased across the board from the March 2022 rates with a three pence increase on petrol vehicles over 2000cc for example, while the equivalent diesel vehicle rate goes up from 16p to 19p, while LPG rates go up by 1p across all vehicles.
The previous rates, effective March 2022, 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.
