Our accounting partner provides the new rates for employees using a company car -
New company car advisory fuel rates are reviewed every quarter, the latest have been published and took effect from 1 June 2023. The rates only apply to employees using a company car. You must use the rates when you either; reimburse employees for business travel in their company cars or need employees to repay the cost of fuel used for private travel. You must not use these rates in any other circumstances.
The guidance states “If you pay rates that are higher than the advisory rates but cannot show the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.”
It is also acceptable to use the previous rates for up to one month from the date the new rates apply.
The advisory fuel rates (per mile rounded to nearest whole penny) for journeys undertaken on or after 1 June 2023 are:
Petrol
Engine size
1400cc or less: 13p
1401cc - 2000cc: 15p
Over 2000c: 23p
LPG
Engine size
1400cc or less: 10p
1401cc - 2000cc: 12p
Over 2000cc: 18p
Diesel
Engine size
1600cc or less: 12p
1601cc - 2000cc: 14p
Over 2000cc: 18p
The Advisory Electricity Rate for fully electric cars is 9p per mile. Electricity is not a fuel for car fuel benefit purposes. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
For help with your accounting needs and to see a quick transparent price list from our partner, please fill out the section to the right and they will be in touch with you shortly.
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