Latest advisory fuel rates for company cars

Advisory fuel rates for company cars are updated by HMRC on a quarterly basis. The rates determine the amount that can be paid to an employee using a company car for business mileage, without income tax consequences. It's possible to use a higher rate, but you must show that the actual fuel cost per mile is greater than the advisory rates. Note that these rates are separate to those that can be paid where an employee uses their own car for business mileage (45p per mile for the first 10,000 miles). HMRC has now published the advisory rates applicable from 1 March 2023. The last update included a bumper 60% increase for the rate for electric vehicles (EVs) due to the increasing costs of energy. The rates for EVs have only increased by 1p for this quarter to 9p per mile, as prices are stabilising. The rate per mile for other vehicles, including hybrids will be:

Engine size	Petrol	LPG
1,400cc or less	13p	10p
1,401cc to 2,000cc	15p	11p
Over 2,000cc	23p	17p

 

Engine size	Diesel
1,600cc or less	13p
1,601cc to 2,000cc	15p
Over 2,000cc	20p