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.