HMRC publishes advisory fuel rates December 2023

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

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

Meanwhile, LPG engine rates for 2000cc plus vehicles are falling by 1p, while the advisory electricity rate (AER) for fully electric cars will drop 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 are as follows:


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 
Engine size Diesel
1600cc or smaller 13p
1601cc to 2000cc 15p
Over 2000cc 20p

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.


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