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fuel advisory rates

The HMRC-approved amount that employers can reimburse staff for business travel in company cars changes from 1 December 2023. What are the new rates?

The advisory fuel rates published by HMRC set fixed amounts that can be paid to an employee using a company car for business mileage, without income tax consequences. It's possible to use a higher rate, but you must show that the actual fuel cost per mile is greater than the advisory rates.

HMRC has now published the advisory rates applicable from 1 December 2023, with a 1p increase for all diesel car users.

The rates per mile will be:

Engine Size Petrol LPG
1400cc or less 14p 10p
1,401cc to 2,000cc 16p 12p
Over 2,000cc 26p 18p


Engine Size Diesel
1600cc or less 13p
1601cc to 2000cc 15p
Over 2000cc 20p

The rate for electric vehicles has dropped to 9p. These rates apply from 1 December 2023, but you can still use the previous rates for one month from that date. For a full list of current and historic rates, click here.

This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit or call 01233 653500.

4th Dec 2023 10:44

fuel advisory rates

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