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

The most notable change this quarter is that the rates reflect the fact that diesel prices are starting to come down, reducing the gap between petrol and diesel, whilst, as energy prices start to stabilise, the electric car rate remains at 9p. 

The electric rate is now being reviewed on a quarterly basis with effect 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

 

12p

 

9p

1,401cc - 2,000cc

15p

 

12p

9p

1,601cc to 2,000cc

 

14p

 

9p

Over 2,000cc.

23p

18p

18p

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 30 June 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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