Cars Advisory Fuel Rates for Company Cars

  • Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
  • If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.

The advisory fuel rates for journeys undertaken on or after 1 March 2023 are:

Engine sizePetrol
1400cc or less13p
1401cc - 2000cc15p
Over 2000cc23p
Engine sizeDiesel
1600cc or less13p
1601cc - 2000cc15p
Over 2000cc20p
Engine sizeLPG
1400cc or less10p
1401cc - 2000cc11p
Over 2000cc17p

Hybrid cars are treated as either petrol or diesel cars for this purpose.

The Advisory Electricity Rate for fully electric cars is increased from 8p to 9p per mile. Electricity is not a fuel for car fuel benefit purposes.