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.

Advisory fuel rates company car by Chris Goad, Partner, Stephenson Smart

Did you find this insight useful?

Why not share online

More Insights from Stephenson Smart

  • The importance of employing an accountant - Martyn Benstead

    3rd November 2022

    What is the benefit to employing an accountant?

    Martyn Benstead, Partner at Stephenson Smart Chartered Accountants and Business Advisors explains why now, more than ever, employing an accountant is important: Financially, as well as politically, these are turbulent times. Replacements in Prime Minister and Chancellor of the Exchequer ...

  • Stephenson Smart Team Wisbech

    9th December 2020

    Meet the Team at Stephenson Smart Wisbech

    Meet the Team at Stephenson Smart in Wisbech Stephenson Smart acquired an office on the historical Crescent in Wisbech when it took over Mellor Bellamy in 2010. The team there provide clients with business and tax advice as well as ...

  • Covid-19 Update

    3rd November 2020

    Covid-19: A notice from Stephenson Smart

    Following the government’s announcement to impose another lockdown in England from 5 November to 2 December, we have taken the decision to close our offices to visitors. We are coming up to our busiest time of year but know that ...

  • Jeremy Hunt Financial Statement Response

    18th October 2022

    Response to Jeremy Hunt Financial Statement

    In a bid to stabilise the countries financial outlook, Jeremy Hunt, the new Chancellor, couldn’t wait until 31st October to make his ‘mini-budget’ scourging financial statement, instead opting to make an ‘emergency budget’ statement in the House of Commons, reversing ...

  • House for Sale: Capital Gains Tax

    23rd September 2021

    Selling a property? Make sure you pay the capital gains tax due, and quickly!…

    On the 6 April 2020, the government made numerous changes to tax payable around property.  The main one being a new requirement to report and pay capital gains tax on disposals of UK residential property 30 days after the completion ...