Advisory fuel rates December 2023

Employer Comments Off on Advisory fuel rates December 2023

HMRC has published the latest advisory fuel rates (AFR) for company car users, which applies from the 1st December 2023.

The rates for some petrol engines and all vehicles with diesel engines increased by 1p per mile.

Meanwhile, LPG engine rates for 2000cc plus vehicles fell by 1p, while the advisory electricity rate (AER) for fully electric cars dropped from 10p to 9p per mile.

According to HMRC, hybrid cars will be treated as either petrol or diesel cars for AFR purposes.

The AFR for December 2023 to February 2024 are as follows:

Advisory fuel only mileage rates
Rates per mile
Engine sizePetrolLPG
1400cc or smaller14p10p
1401cc to 2000cc16p12p
Over 2000cc26p18p
Engine sizeDiesel
1600cc or smaller13pv
1601cc to 2000cc15p
Over 2000cc20p

The previous rates, effective September 2023, can be used for up to one month from the date the new rates apply.

These rates are only applicable to employees using company cars to either reimburse them for business travel or when an employee needs to repay the cost of fuel used for private travel. Employers must not use these rates in any other circumstances.

The AFR and AER will be updated again on 1 March 2024. 

Contact us about employee benefits-in-kind.