Do you or your employees have company cars? If you do, you need to keep an eye on the advisory fuel rates, updated by the HMRC every quarter. The fuel rates are reviewed on the following dates each year:

• 1st March
• 1st June
• 1st September
• 1st December

To keep track of the changes, visit the following link on the Gov.UK website – Advisory Fuel Rates. If you use a payroll provider, they will keep you up to date with these figures.

The advisory fuel rates only apply to employees that have a company car. They do not apply to vans or where employees use their vehicle for business travel. The rates can be used in two ways:

• If an employee needs to be reimbursed for business travel
• If an employee needs to pay you back for fuel used for private travel

Because the rates change during the year, employers can use the previous rates for up to one month after the new rates are issued. Ideally, where possible, keeping track of the rates and using the new ones as soon as they have been published is better for all parties concerned.

The latest petrol and diesel prices are taken from the Department for Business, Energy and Industrial Strategy. The liquified petroleum gas (LPG UK average) is from the Automobile Association website.

Fuel rates June 2021

The advisory fuel rates effective from 1^st June 2021 are shown in the table below.

If you have hybrid cars, you need to use either the petrol or diesel rates as appropriate.

The advisory electricity rate for fully electric cars is 4 pence per mile.

We hope you found this helpful article. If you need any further advice about the advisory fuel rates or our payroll services, please get in touch. 

You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..