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Update 2022: Advisory fuel rates for the UK

by Voirrey Ellison, Payroll Operations Manager

With energy, petrol and prices in general still rising across the UK, HMRC have released new Advisory Fuel rates to take place from September 1st 2022. 

What is the Advisory fuel rate? 

Advisory Fuel rates (also known as AFRs) are the rates that the government and HMRC recommend employers use to reimburse employees’ fuel costs while driving a company car, for business.  

What are the new Advisory fuel rates for 2022? 

 The new rates are as follows: 

Engine size 

Petrol — rate per mile 

LPG — rate per mile 

1400cc or less 

15 pence 

9 pence 

1401cc to 2000cc 

18 pence 

11 pence 

Over 2000cc 

27 pence 

17 pence 


Engine size 

Diesel — rate per mile 

1600cc or less 

14 pence 

1601cc to 2000cc 

17 pence 

Over 2000cc 

22 pence 


When do the new Advisory fuel rates apply? 

The new Advisory fuel rates are to be used from 1st September 2022, although the previous rates that were set in March 2022 can be used for up to one month from the date the new rates apply. 

Are the new Advisory fuel rates mandatory? 

No, the new Advisory fuel rates are not mandatory. Employers are not obliged to pay travel or fuel expenses at these rates. For example, if a car is more fuel-efficient, an employer can choose to pay below the Advisory fuel rate. Conversely, as an employer you could pay a higher rate if you can demonstrate to HMRC that your employees’ true cost per mile is higher. 

How is your business handling the new Advisory fuel rates for 2022? 

Fundamentally, we at Advanced believe that payroll software is the positive force to help secure your people’s financial wellbeing. A people management team who places accurate pay at the centre of what they do will inevitably find they have a happier, content and ultimately more secure workforce- elements which all reflect positively upon your employer brand. 

To find out more about how Advanced Payroll software can transform the way you meet the demands of new legislation and advice from HMRC, and help you ensure accuracy and compliance throughout the next financial year and beyond, get in touch with one of our friendly team members today. 

Voirrey Ellison

Voirrey Ellison


Payroll Operations Manager

Voirrey Ellison has worked in Payroll for 23 years and is passionate about her role. As our Payroll Operations Manager she understands the importance of ensuring everyone is paid accurately and on time. Voirrey and her team are an essential part of OneAdvanced’s success.

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