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 | |||||||||
| 1,400cc or less | 14p | 10p | |||||||||
| 1,401cc to 2,000cc | 16p | 12p | |||||||||
| Over 2000cc | 26p | 18p | |||||||||
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