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
