HMRC have published new advisory fuel rates for company car drivers which apply from 1 March 2023. 

The most notable change this quarter is that the rates reflect the fact that fuel prices are starting to come back down from the highs of last year. Energy prices are still high though and this is reflected in the increased electric car rate, which goes up by 1p to 9p. 

The electric rate will be reviewed quarterly from 1 March 2023. 

The new rates per mile are:

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

13p

 

10p

9p

1,600cc or less

 

13p

 

9p

1,401cc - 2,000cc

15p

 

11p

9p

1,601cc to 2,000cc

 

15p

 

9p

Over 2,000cc.

23p

20p

17p

9p

* Fully electric cars only

Hybrid cars are treated as either petrol or diesel cars for these purposes.

The old rates may be used until 31 March 2023, see Advisory fuel rates (company car drivers)

Useful guides on this topic

Company cars
Company car tax. How do you work out car benefits? How do you work out the car fuel benefit? Are there savings for low-emissions vehicles? How do you reduce the car benefit? Cars and the tax tribunals and Top Tax Tips.


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