Advisory fuel rates company car – an overview by Partner, Chris Goad:
New advisory fuel rates for company cars have been published and took effect from 1 September 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 September 2023 are:
| Engine size | Petrol |
| 1400cc or less | 13p |
| 1401cc – 2000cc | 16p |
| Over 2000cc | 25p |
| Engine size | LPG |
| 1400cc or less | 10p |
| 1401cc – 2000cc | 12p |
| Over 2000cc | 19p |
| Engine size | Diesel |
| 1600cc or less | 12p |
| 1601cc – 2000cc | 14p |
| Over 2000cc | 19p |
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 10p 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.
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