Chartered Accountants
Advisory Fuel Rates For Company Cars
The new company car advisory fuel rates published by HMRC took effect from 1 June 2023. The advisory rates for petrol vehicles remain the same, whereas diesel vehicles have been reduced by up to 2 pence per mile to reflect falling fuel prices.
The advisory fuel rates for journeys undertaken from 1 June are:
| Engine Size | Petrol |
|---|---|
| 1400cc or less | 13p |
| 1401cc - 2000cc | 15p |
| Over 2000cc | 23p |
| Engine Size | LPG |
|---|---|
| 1400cc or less | 10p |
| 1401cc - 2000cc | 12p |
| Over 2000cc | 18p |
| Engine Size | Diesel |
|---|---|
| 1600cc or less | 12p |
| 1601cc - 2000cc | 14p |
| Over 2000cc | 18p |
After being increased during the last review to better reflect prices, fully electric company cars remain at 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.
