Chartered Accountants
Advisory Fuel Rates For Company Cars
HMRC have published the new company car advisory fuel rates (AFRs) that take effect from 1 December 2023. While there have been increases for some petrol, LPG and diesel engine sizes, the rate for electric vehicles has been lowered.
The AFRs for journeys undertaken from 1 December are:
| Engine Size | Petrol |
|---|---|
| 1400cc or less | 14p |
| 1401cc - 2000cc | 16p |
| Over 2000cc | 26p |
| Engine Size | LPG |
|---|---|
| 1400cc or less | 10p |
| 1401cc - 2000cc | 12p |
| Over 2000cc | 18p |
| Engine Size | Diesel |
|---|---|
| 1600cc or less | 13p |
| 1601cc - 2000cc | 15p |
| Over 2000cc | 20p |
The advisory electricity rate (AER) for fully electric company cars has returned to 9 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 were applied.
If you have any queries regarding company cars, or mileage reimbursement, please email our Taxperts or call one of our offices.
