New advisory fuel rates from December 2023

HMRC has announced new fuel rates for company cars. They apply to all journeys on or after 1 December 2023 until further notice.

For one month from the date of change employers may use either the previous or new rates. They may therefore make or require supplementary payments but are under no obligation to do either.

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

The amounts can be used for VAT but employers will need to retain receipts.

The advisory rate for fully electric cars falls from 10p a mile to 9p a mile. Electricity is not a fuel for car fuel benefit purposes.

Engine size               Petrol   LPG

1 400cc or less           14p     10p

1 401cc to 2 000cc     16p     12p

Over 2 000cc               26p ...