Changes have been made by HMRC to the advisory fuel rates (AFRs) for all journeys on or after 1 December 2023 for company car drivers claiming back fuel costs from their employer. The rates are reviewed quarterly and are applicable where employers reimburse employees for business travel (company cars); or where employers require employees to repay the cost of private travel
Updated AFR From 1 December 2023
| Engine size | Petrol — rate per mile | LPG — rate per mile |
|---|---|---|
| 1400cc or less | 14 pence | 10 pence |
| 1401cc to 2000cc | 16 pence | 12 pence |
| Over 2000cc | 26 pence | 18 pence |
| Engine size | Diesel — rate per mile |
|---|---|
| 1600cc or less | 13 pence |
| 1601cc to 2000cc | 15 pence |
| Over 2000cc | 20 pence |
LPG
| Engine size (cc) | Mean MPG | Fuel price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory fuel rate |
|---|---|---|---|---|---|
| Up to 1400 | 39.6 | 86.7 pence | 394.1 pence | 10 pence | 10 pence |
| 1401 to 2000 | 33.7 | 86.7 pence | 394.1 pence | 11.7 pence | 12 pence |
| Over 2000 | 21.3 | 86.7 pence | 394.1 pence | 18.5 pence | 18 pence |
Electric
From 1 December 2023 the advisory electric rate for fully electric cars will be 9 pence per mile.
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates. The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.
You can use the previous rates for up to 1 month from the date any new rates apply.
Old AFRs From 1 September 2023 to 30 November 2023
| Engine size | Petrol — rate per mile | LPG — rate per mile |
|---|---|---|
| 1400cc or less | 13 pence | 10 pence |
| 1401cc to 2000cc | 16 pence | 12 pence |
| Over 2000cc | 25 pence | 19 pence |
| Engine size | Diesel — rate per mile |
|---|---|
| 1600cc or less | 12 pence |
| 1601cc to 2000cc | 14 pence |
| Over 2000cc | 19 pence |
Guidance notes from HMRC are available here.
As accountants, we can provide advice regarding a range of tax-efficient planning strategies to implement to help you and your business. Contact the Team at HB Accountants here for more information or call 01992 444466.
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
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