Chartered Accountants
Advisory Fuel Rates For Company Cars
The new company car advisory fuel rates (AFRs) published by HMRC take effect from 1 September 2023.
The AFRs for journeys undertaken from 1 September are:
| Engine Size | Petrol |
|---|---|
| 1400cc or less | 13p |
| 1401cc - 2000cc | 16p |
| Over 2000cc | 25p |
| Engine Size | LPG |
|---|---|
| 1400cc or less | 10p |
| 1401cc - 2000cc | 12p |
| Over 2000cc | 19p |
| Engine Size | Diesel |
|---|---|
| 1600cc or less | 12p |
| 1601cc - 2000cc | 14p |
| Over 2000cc | 19p |
After being unchanged during the last quarterly review, advisory electricity rate (AER) for fully electric company cars increased by 1 pence, to 10 pence per mile. Hybrid cars are treated as either petrol or diesel cars for AFRs.
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.
