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December 2023

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CARS - 12.12.2023

New advisory fuel rates for company cars

Changed rates . HMRC has updated its advisory fuel rates (AFRs) for the reimbursement of fuel costs, relating to company cars paid by employers or employees where one pays for fuel that’s properly an expense of the other. The new rates apply from 1 December 2023 but the old rates (shown in brackets below) can be used until 31 December 2023.

Tip. If you don’t think the new AFRs reflect the fuel costs accurately enough for your company cars, you can work out and use your own rates. Keep a record of how you calculated them in case HMRC asks questions.

Engine size	Electric per mile	Petrol per mile	LPG per mile	Diesel per mile
Up to 1,400cc	-	14p (13p)	10p (10p)	-
1,401cc to 2,000cc	-	16p (16p)	12p (12p)	-
Up to 1,600cc	-	-	-	13p (12p)
1,601cc to 2,000cc	-	-	-	15p (14p)
Over 2,000cc	-	26p (25p)	18p (19p)	20p (19p)
N/A	9p (10p)	-	-	-

HMRC’s advisory fuel rates have changed. The new rates apply from 1 December 2023. The previous rates can be used for reimbursement of fuel costs for periods up to 31 December.