• Foxmain Associates

Mileage and Fuel Allowance

If you're looking at mileage allowances for business use of employees own vehicles, and reviewing or planning your finances, please feel free to contact us we can discuss your specific circumstances to help you plan tax efficiently.

The latest advisory fuel rates (AFRs) have been published by HMRC and are effective as of 1 December 2021 for company car drivers claiming back fuel costs from their employer.


Petrol and diesel pence per mile (PPM) rates, As well as all three LPG rates, for all three engine size ranges have been increased to reflect the rising fuel prices.


Hybrid cars are treated as either petrol or diesel cars for AFR purposes.


The advisory electricity rate (AER) for pure electric cars has also increased for the first time since its introduction from 4ppm to 5ppm.


The previous rates can still be used up until 1 January 2022.


Approved Mileage Rates:


Passenger Payments Cars and Vans:


5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them.


Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all.


Advisory Fuel Rates:


Petrol:

Diesel:

LPG:

The advisory electricity rate for fully electric cars is 5 pence per mile.


Hybrid cars are treated as either petrol or diesel cars for AFR purposes.


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