• Car fuel benefit applies if an employee has the benefit of private fuel for a company car.
• The benefit is calculated by applying the percentage used to calculate the car benefit by a 'fuel charge multiplier'.
• The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Car fuel benefit 2022/23
Fuel charge multiplier	£25,300

Cars - Advisory fuel rates for company ycars

Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.

If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.

The advisory fuel rates for journeys undertaken on or after 1 March 2022 are:

Engine size	Petrol
1400cc or less	13p
1401cc - 2000cc	15p
Over 2000cc	22p

Engine size	Diesel
1600cc or less	11p
1601cc - 2000cc	13p
Over 2000cc	16p

Engine size	LPG
1400cc or less	8p
1401cc - 2000cc	10p
Over 2000cc	15p

Hybrid cars are treated as either petrol or diesel cars for this purpose.

The Advisory Electricity Rate for fully electric cars is 5 pence per mile. Electricity is not a fuel for car fuel benefit purposes.