New Advisory Fuel Rates for Company Cars in 2023 | Atek Accounting

New company car advisory fuel rates have been published and will take effect on June 1, 2023

The guidance states: ‘You can use the previous rates for up to one month from the date the new 2023 advisory fuel rates apply’. The rates only apply to employees using a company car.

Calculating fuel rates for different company car categories

The fuel rates for journeys undertaken on or after June 1, 2023 are:

Engine size Petrol
1400cc or less 13p
1401cc – 2000cc 15p
Over 2000cc 23p
Engine size LPG
1400cc or less 10p
1401cc – 2000cc 12p
Over 2000cc 18p
Engine size Diesel
1600cc or less 12p
1601cc – 2000cc 14p
Over 2000cc 18p

Compliance with HMRC Guidelines on Advisory Fuel Rates

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’s car policy, please contact us.

Internet link: GOV.UK AFR