Advisory Fuel Rates for company cars
HMRC has published the third quarterly advisory fuel rates for 2021. The rates are used by organisations in calculating reimbursements for fuel costs and business travel in company cars.
From 1 September, rates for petrol and diesel engines have been increased across the board, while the rates for LPG have fallen. Petrol and diesel rates have increased by 1p with the exception of the rate for diesel engines larger than 2000cc, which has increased by 2p. LPG rates have fallen by 1p for engines smaller than 2000cc, and by 2p for engines larger than 2000cc.
Employers can use previous rates for up to one month after the date the new rates apply.