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

The most notable change this quarter is that the rates, which had been coming down, now appear to be starting to increase, although only for larger-sized engines and electric cars. 

The new rates per mile are:

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

13p

 

10p

10p

1,600cc or less

 

12p

 

10p

1,401cc - 2,000cc

16p

 

12p

10p

1,601cc to 2,000cc

 

14p

 

10p

Over 2,000cc.

25p

19p

19p

10p

* 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 September 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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