Advisory fuel rates from 1 September 2023

advisory fuel rates September 2023

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

The rate for electric cars will be 10p per mile and hybrid cars are treated as petrol or diesel for these purposes.  This further increase reflects the higher electricity costs faces by energy consumers throughout the country.

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.

Further details are laid out below:

Advisory fuel rates from 1 September 2023:

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 13 pence 10 pence
1401cc to 2000cc 16 pence 12 pence
Over 2000cc 25 pence 19 pence
Engine size Diesel — rate per mile
1600cc or less 12 pence
1601cc to 2000cc 14 pence
Over 2000cc 19 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 

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


Let’s start a conversation 

    Subscribe me for updates and news from In Accountancy

    Related articles

    tax on interest income
    Limited Companies

    Maximise Your Tax-Free Savings Interest Income: UK Guide for 2024

    Over the last year UK savers have finally been in a position to earn some interest on their savings, but how is interest income taxed, and how can you maximise the tax free element of what you receive? 🤔
    If you meet certain criteria or have flexibility in how you structure your income, then you can potentially enjoy up to £18,570 of your income completely tax-free!! 🥳

    Read More »
    time to pay arrangement
    Limited Companies

    Time to Pay Arrangements: A Lifeline for Owner-Managed Businesses

    Are You Struggling to Meet Your Tax Obligations?

    More than 30,000 UK businesses were involved in some kind of insolvency action in 2023, which was an increase of more than 50% compared with 2021 according to an article in the Guardian earlier this year.

    And the economic outlook would suggest that despite the fact that we are no longer in recession, 2024 and 2025 will be a challenging year for UK small business.

    With this in mind we have prepared the following guide and associated video to help you understand what your options are with regards to agreeing what is known as a ‘Time to Pay’ arrangement with HMRC.

    Read More »

    Find out how we can help?

    Lectus scelerisque a donec tincidunt litora per eleifend eget ut sagittis conubia pharetra scelerisque dui ultricies duis parturient auctor adipiscing.


    Let’s start a conversation 

      Subscribe me for updates and news from In Accountancy