Advisory Fuel Rates from 1 December 2023

From 1 December 2023, the advisory fuel rates to be used by employees when claiming back mileage using a company car are as follows:

Engine sizePetrol – rate per mileLPG – rate per mile
1400cc or less14 pence10 pence
1401cc to 2000cc16 pence12 pence
Over 2000cc26 pence18 pence
Engine sizeDiesel – rate per mile
1600cc or less13 pence
1601cc to 2000cc15 pence
Over 2000cc20 pence

These rates should also be used where an employee needs to repay the cost of fuel used in private travel.

From 1 December 2023 the advisory electric rate for fully electric cars is 9p per mile. Hybrid cars are treated as either diesel or petrol for advisory fuel rates.

The previous advisory fuel rates can be used up to 31 December 2023 if desired.

Given the move towards electric cars and incentives to go green when choosing which car to drive, it’s worth understanding the tax implications of the various options. If this is something you would like to discuss, our friendly team can help and advise. We are also able to advise on all employer/employment taxation issues and can put the business on a path to achieving tax optimisation, whilst achieving other objectives in the business plan.

If you have any queries on company car mileage or would like to discuss employer taxation issues more widely, please contact [email protected] or call 01527 558539. Our website has further information on the wide range of services we offer and how we can help both businesses and individuals with all aspects of tax and accounting compliance and advisory issues. Please take a look and get in touch if you have any questions or just want to understand something in more detail

HMRC has further guidance on using advisory fuel rates and how they are calculated.