Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 June 2023.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2023 are:

 

Engine size	Petrol
1400cc or less	13p
1401cc - 2000cc	15p
Over 2000cc	23p

 

Engine size	LP
1400cc or less	10p
1401cc - 2000cc	12p
Over 2000cc	18p

 

Engine size	Diesel
1600cc or less	12p
1601cc - 2000cc	14p
Over 2000cc	18p

 

HMRC guidance states that the rates only apply when you either:

• Reimburse employees for business travel in their company cars
• Require employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 9p per mile. Electricity is not a fuel for car fuel benefit purposes.

If you would like to discuss your company car policy, please contact our Business Tax team here. 

Internet link: GOV.UK AFR