Advisory Fuel Rates

HMRC has published its latest advisory fuel rates for company cars, starting 1 June 2023.

Advisory fuel rates (AFRs) 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. They can also be used to require employees to reimburse the cost of fuel for any private travel. 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. AFRs for the quarter starting 1 June 2023 have been published. The diesel rates have all been cut, but those for unleaded remain unchanged. Two of the LPG rates have increased. The 9p per mile rate for wholly electric vehicles remains the same.

Petrol

• 1,400cc or less - 13p
• 1,401cc to 2,000cc - 15p
• Over 2,000cc - 23p

LPG

• 1,400cc or less - 10p
• 1,401cc to 2,000cc - 12p
• Over 2,000cc - 18p

Diesel

• 1,600cc or less - 12p
• 1,601cc to 2,000cc - 14p
• Over 2,000cc - 18p