HMRC has announced their suggested reimbursement rates for employees’ private mileage using their company car from 1 December 2022, which are summarised in the table below. The rates have been reduced in line with the recent fall in petrol prices. However, diesel prices remain the same and LPG reimbursement rates have increased.
Remember, that provided all private fuel is fully reimbursed by the employee/director, the fuel benefit does not apply.
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 14p
(15p) |
10p
(9p) |
|
| 1600cc or less | 14p | ||
| 1401cc to 2000cc | 17p
(18p) |
12p
(11p) |
|
| 1601 to 2000cc | 17p | ||
| Over 2000cc | 26p
(27p) |
22p | 18p
(17p) |
Where the employer’s policy is that they do not pay for any fuel for the company car, these are the amounts that can be reimbursed to the employee in respect of qualifying business journeys for the payments to be tax-free. Where there has been a change, the rate for the previous quarter is shown in brackets. You can continue to use the previous rates for up to 1 month from the date the new rates apply.
Note that for hybrid cars, you must use the petrol or diesel rate. For fully electric cars, the rate is now 8p per mile (previously 5p per mile).
For more information and to discuss your tax affairs in further detail, contact your usual Beavis Morgan Partner or email info@beavismorgan.com.