HMRC review advisory fuel rates every quarter, on the 1st of March, June, September and December. New corporate car recommended fuel rates were issued on March 1, 2022, and went into effect on March 1, 2022. Only workers who drive a corporate car are subject to the tariffs. The following are the suggested fuel prices for travels beginning on or after March 1, 2022:
But what if your employees drive an EV? In that case, the advisory electricity rate for electric cars is 5 pence per mile. Hybrid cars are treated as either diesel or petrol cars for advisory fuel rates.
Employees should carefully consider whether it is advantageous having private fuel provided for their company car. Investing in EVs or utilising salary sacrifice schemes, using the 1% Benefit In Kind rate, could also be a sound financial decision to save your company money in the long run. Check out our blog post about Salary Sacrifice EVs and whether you should consider them.