New company car advisory fuel rates have been published and took effect on 1 September 2023. Please note, these rates only apply to employees using a company car.
The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’.
The advisory fuel rates for journeys undertaken on or after 1 September 2023 are:
| Engine Size – Petrol | Fuel Rate |
|---|---|
| 1400cc or less | 13p |
| 1401cc – 2000cc | 16p |
| Over 2000cc | 19p |
| Engine Size – LPG | |
| 1400cc or less | 10p |
| 1401cc – 2000cc | 12p |
| Over 2000cc | 19p |
| Engine Size – Diesel | |
| 1600cc or less | 12p |
| 1601cc – 2000cc | 14p |
| Over 2000cc | 19p |
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 10p per mile. Electricity is not a fuel for car fuel benefit purposes.
If you would like to discuss your company car policy, please do contact a member of the team at CB Reid.