Advisory fuel rates for company cars

    Simpson Wood
    9th March 2023
    Home » Blog Posts » Advisory fuel rates for company cars

    New company car advisory fuel rates have been published and took effect from 1 March 2023.

    The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

    The advisory fuel rates for journeys undertaken on or after 1 March 2023 are:

    Engine sizePetrol
    1400cc or less13p
    1401cc – 2000cc15p
    Over 2000cc23p

    Engine sizeLPG
    1400cc or less10p
    1401cc – 2000cc11p
    Over 2000cc17p

    Engine sizeDiesel
    1600cc or less13p
    1601cc – 2000cc15p
    Over 2000cc20p

    HMRC guidance states that the rates only apply when you either:

    • reimburse employees for business travel in their company cars
    • require employees to repay the cost of fuel used for private travel.

    You must not use these rates in any other circumstances.

    The Advisory Electricity Rate for fully electric cars is increased from 8p to 9p per mile. Electricity is not a fuel for car fuel benefit purposes.

    If you would like to discuss your company car policy, please contact us.

    Internet link: GOV.UK AFR

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Labour market challenges remain as wages grow

    The UK labour market remains challenging as employers cut staff numbers and wage growth accelerated, according to the latest data from the Office for National Statistics (ONS). Average weekly earnings…

    IMF upgrades UK’s economic outlook

    The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year. The global institution upgraded its prediction for UK growth to 1.6% for this year…

    SWFS Q & A – Nvidia and tech sell-off

    How has the recent Nvidia and tech sell-off impacted your portfolio? This week, we briefed our clients and financial planners on: ✅ What happened on Monday✅ How our Investment Committee…