ARTICLE: Advisory Fuel Rates
HM Revenue & Customs (HMRC) has announced revisions to the Advisory Fuel Rates (AFR).
These rates only apply to employees using a company car and start from 1 December 2023. However, you can use the previous rates for up to one month from the date the new rates apply.
Table of rates (Petrol, diesel and LPG rates shown are amount per mile)
| Engine size | Petrol | LPG |
|---|---|---|
| 1400cc or less | 14p | 10p |
| 1401cc to 2000cc | 16p | 12p |
| Over 2000cc | 26p | 18p |
| Engine size | Diesel |
|---|---|
| 1600cc or less | 13p |
| 1601cc to 2000cc | 15p |
| Over 2000cc | 20p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
Advisory Electricity Rate
From 1 March 2023 the advisory electricity rate (AER) for fully electric cars will rise from 8p to 9p per mile.
Electricity is not a fuel for car fuel benefit purposes.
HMRC review these rates four times a year. Any changes take effect at the beginning of each calendar quarter (on 1 March, 1 June, 1 September and 1 December).
More details on the current AFR are available through the HMRC website:
