Advisory fuel rates from 1 December 2023

advisory fuel rates September 2023

Advisory fuel rates have changed from quarter beginning 1 December 2023 for certain vehicles!

The rate for electric cars has been reduced to 9p per mile and hybrid cars are treated as petrol or diesel for these purposes.  This reflects the slight decrease to electricity costs over recent months.

Other changes can be found in the main table

There are a few additional changes to petrol, diesel and LPG rates, which are all laid out in the table below 👇🏽

Advisory fuel rates are used in the following circumstances:

  • to reimburse employees for business travel in their company cars; or
  • to require employees to repay the cost of fuel used for private travel.

Advisory fuel rates from 1 December 2023:

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 14 pence 10 pence
1401cc to 2000cc 16 pence 12 pence
Over 2000cc 26 pence 18 pence
Engine size Diesel — rate per mile
1600cc or less 13 pence
1601cc to 2000cc 15 pence
Over 2000cc 20 pence

Advisory fuel rates are reviewed quarterly, and so long as these rates are used, there is no requirement for businesses to apply for a dispensation to cover payments made, nor will there be any Class 1A national insurance contributions due on any amount paid over to employees for reimbursement for business travel in company cars.

For more information on fuel rates for company cars, please see https://www.gov.uk/guidance/advisory-fuel-rates 

If you have any questions regarding your company car or any other TAX queries, please contact the IN Team 

 

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