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 size

Petrol

1400cc or less

14p

1401cc - 2000cc

16p

Over 2000cc

26p

Engine size

LPG

1400cc or less

10p

1401cc - 2000cc

12p

Over 2000cc

18p

Engine size

Diesel

1600cc or less

13p

1601cc - 2000cc

15p

Over 2000cc

20p

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