Advisory Fuel Rates from 1st December 2023

The HMRC-approved amount that employers can reimburse staff for business travel in company cars changes from 1 December 2023.

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:

Petrol / LPG:

1,400cc or less
Petrol per mile: 14p
LPG per mile: 10p

1,401cc to 2,000cc
Petrol per mile: 16p
LPG per mile: 12p

Over 2,000cc
Petrol per mile: 26p
LPG per mile: 18p

Diesel:

1,600cc or less
Diesel per mile: 13p

1,601cc to 2,000cc
Diesel per mile: 15p

Over 2,000cc
Diesel per mile: 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.