Talk to the Taxperts

01382 312100

Advisory Fuel Rates For Company Cars

The new company car advisory fuel rates published by HMRC took effect from 1 December 2022. The advisory rates have increased for both LPG and fully electric vehicles, whereas there has been a 1 pence reduction for petrol vehicles.

The advisory fuel rates for journeys undertaken from 1 December are:

Engine SizePetrol
1400cc or less14p
1401cc - 2000cc17p
Over 2000cc26p
Engine SizeLPG
1400cc or less10p
1401cc - 2000cc12p
Over 2000cc18p
Engine SizeDiesel
1600cc or less14p
1601cc - 2000cc17p
Over 2000cc22p

The advisory electricity rate for reimbursing employees for business travel in fully electric company cars has risen from 5 pence to 8 pence per mile and going forward will be reviewed quarterly. 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.

Latest News

View all latest news

February 9, 2024

Let Me Entertain You!

A client recently contacted us to ask about the tax implications for booking tickets for the Six Nations Rugby Championship. He was considering inviting both clients and staff…

January 3, 2024

New Year, New Tax Changes

With the start of another year, it’s time to think about the changes that lie ahead. Instead of skipping ahead to 1 April or 5 April, this year…

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

Visit EQ Accountants Visit EQ Accountants

Explore the full range of EQ Expertise