Chartered Accountants
Advisory Fuel Rates For Company Cars
The new company car advisory fuel rates published by HMRC took effect from 1 March 2023. The advisory rates have decreased across the board except for fully electric vehicles that have seen a 1 pence increase.
The advisory fuel rates for journeys undertaken from 1 March are:
| Engine Size | Petrol |
|---|---|
| 1400cc or less | 13p |
| 1401cc - 2000cc | 15p |
| Over 2000cc | 23p |
| Engine Size | LPG |
|---|---|
| 1400cc or less | 10p |
| 1401cc - 2000cc | 11p |
| Over 2000cc | 17p |
| Engine Size | Diesel |
|---|---|
| 1600cc or less | 13p |
| 1601cc - 2000cc | 15p |
| Over 2000cc | 20p |
Since the last review, reimbursing employees for business travel in fully electric company cars has risen to 9 pence per mile. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
The rates only apply when you either:
- reimburse employees for business travel in their company cars or
- require employees to repay the cost of fuel used for private travel.
You must not use these rates in any other circumstances.
The previous rates, which you can find here, can still be used for up to 1 month from when the date the new rates was applied.
If you have any queries regarding company cars, or mileage reimbursement, please email our Taxperts or call one of our offices.
