Latest advisory fuel rates for company cars
The amount that employers can reimburse staff for business travel in company cars changes from 1 March 2023. What are the new rates?

Advisory fuel rates 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. 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. Note that these rates are separate to those that can be paid where an employee uses their own car for business mileage (45p per mile for the first 10,000 miles). HMRC has now published the advisory rates applicable from 1 March 2023. The last update included a bumper 60% increase for the rate for electric vehicles (EVs) due to the increasing costs of energy. The rates for EVs have only increased by 1p for this quarter to 9p per mile, as prices are stabilising. The rate per mile for other vehicles, including hybrids will be:
Engine size |
Petrol |
LPG |
---|---|---|
1,400cc or less |
13p |
10p |
1,401cc to 2,000cc |
15p |
11p |
Over 2,000cc |
23p |
17p |
Engine size |
Diesel |
---|---|
1,600cc or less |
13p |
1,601cc to 2,000cc |
15p |
Over 2,000cc |
20p |
Related Topics
-
Should you revoke your 20-year-old option?
Your business has let out a building to a tenant and it is now just over 20 years since you opted to tax the property with HMRC. Should you revoke it so that your tenant no longer needs to pay VAT?
-
Chip shop owner fined £40k for hiring illegal worker
A Surrey fish and chip shop owner has been left in shock after being fined £40,000 for allegedly employing someone who didn’t have the right to work in the UK, even though he conducted a right to work check. Where did this employer go wrong and what can you learn from it?
-
Change to IHT on pensions proposals
HMRC has published a policy statement announcing an important change to its plans to include pension savings in an individual's estate for inheritance tax (IHT) purposes. What’s the full story?