Specialist Tax News

Advisory fuel rate for company cars

The table below sets out the HMRC advisory fuel rates from 1 September 2023. These are the suggested reimbursement rates for employees’ private mileage using their company car.

Where the employer does not pay for any fuel for the company car these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.

Engine Size Petrol Diesel LPG
1400cc or less 13p 10p
1600cc or less 12p
1401cc to 2000cc 16p

(15p)

12p
1601 to 2000cc 14p
Over 2000cc 25p

(23p)

19p

(18p)

19p

(18p)

Where there has been a change the previous rate is shown in brackets.

You can also continue to use the previous rates for up to 1 month from the date the new rates apply.

Note that for hybrid cars you must use the petrol or diesel rate. For fully electric vehicles the rate is 10p (9p) per mile.