Advisory fuel rates for company cars

    Luke Mudd
    18th December 2023
    Home » Categories » Business » Advisory fuel rates for company cars

    New company car advisory fuel rates have been published and took effect from 1 December 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 December 2023 are:

    Engine sizePetrol
    1400cc or less14p
    1401cc – 2000cc16p
    Over 2000cc26p

    Engine sizeLPG
    1400cc or less10p
    1401cc – 2000cc12p
    Over 2000cc18p

    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 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.

    Clarity on new border checks is vital, says BCC

    The government must clarify plans around new customs processes as firms remain in the dark about crucial aspects of their operation, says the British Chambers of Commerce (BCC). The first…
    From below of delighted aged male entrepreneur in classy outfit standing on street and speaking on cellphone while laughing and looking away

    Over 50s bucking decline in freelance numbers

    Tens of thousands more over 50s are now running their own businesses despite an overall decline in self-employment since 2020, according to the Association of Independent Professionals and the Self-Employed…

    HMRC sends warning to cryptoasset users

    As the use of cryptoassets continues to grow HMRC is warning people to check if they need to complete a self assessment tax return for the 2022/23 tax year to avoid…

    Raise VAT threshold to £100,000, says FSB

    The government should raise the turnover threshold for VAT from £85,000 to £100,000, according to the Federation of Small Businesses (FSB). The business group said that this would give firms…