Latest advisory fuel rates published

The HMRC-approved amount that employers can reimburse staff for business travel in company cars changes from 1 December 2023. What are the new rates?

Latest advisory fuel rates published

The advisory fuel rates published by HMRC set fixed amounts 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.

HMRC has now published the advisory rates applicable from 1 December 2023, with a 1p increase for all diesel car users.

The rates per mile will be:

Engine size

Petrol

LPG 

 

1,400cc or less

14p

10p

 

1,401cc to 2,000cc

16p

12p

 

Over 2000cc

26p

18p

 

 

Engine size

Diesel

1,600cc or less

13p

1,601cc to 2,000cc

15p

Over 2,000cc

20p

 

 

 
           

The rate for electric vehicles has dropped to 9p. These rates apply from 1 December 2023, but you can still use the previous rates for one month from that date. For a full list of current and historic rates, click here.

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