The HMRC recently published the latest advisory fuel rates (AFR) for company car users. The rates for some petrol engines and all vehicles with diesel engines increased by 1p per mile. LPG engine rates for 2000cc plus vehicles have fallen by 1p and the advisory electric rate (AER) for fully electric cars has dropped from 10p to 9p per mile. Hybrid cars are treated as either petrol or diesel for AFR purposes.
| ADVISORY FUEL ONLY MILEAGE RATES | ||
| RATES PER MILE | ||
| ENGINE SIZE | PETROL | LPG |
| 1400cc or smaller | 14p | 10p |
| 1401cc to 2000cc | 16p | 12p |
| Over 2000cc | 26p | 18p |
| RATES PER MILE | |
| ENGINE SIZE | DIESEL |
| 1600cc or smaller | 13p |
| 1601 to 2000cc | 15p |
| Over 2000cc | 20p |
The rates are applicable to employees using company cars for business travel or when an employee needs to repay the cost of fuel used for private travel.
The HMRC have advised the next update will be 1 March 2024.
