New company car advisory fuel rates have been published and took effect from 1 June 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 June 2023 are:
Engine size |
Petrol |
1400cc or less |
13p |
1401cc - 2000cc |
15p |
Over 2000cc |
23p |
Engine size |
LP |
1400cc or less |
10p |
1401cc - 2000cc |
12p |
Over 2000cc |
18p |
Engine size |
Diesel |
1600cc or less |
12p |
1601cc - 2000cc |
14p |
Over 2000cc |
18p |
HMRC guidance states that the rates only apply when you either:
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 our Business Tax team here.
Internet link: GOV.UK AFR