If you pay for the fuel used in your company car you are entitled to recover the cost of the fuel – for business journeys – based on agreed Advisory Fuel Rates (AFRs), from your employer.
If the agreement with your employer is that you pay for all the fuel costs and that none can be recovered from the employer, then you can claim for the recorded business miles at agreed AFR rates as an expense claim on your tax return or by calling HMRC.
The AFRs are updated quarterly to reflect changes in fuel prices. The rates from 1 March 2022 are:
You can use the previous rates for up to 1 month from the date the new rates apply:
Petrol
- 1400cc or less 13p per mile
- 1401cc to 2000cc 15p per mile
- Over 2000cc 22p per mile
LPR
- 1400cc or less 8p per mile
- 1401cc to 2000cc 10p per mile
- Over 2000cc 15p per mile
Diesel
- 1600cc or less 11p per mile
- 1601cc to 2000cc 13p per mile
- Over 2000cc 16p per mile
These AFRs can also be used to calculate the value of private fuel costs if your employer does pay for your private fuel. It may be possible to reimburse your employer and avoid the Car Fuel Benefit charge.