New advisory fuel rates from March

HMRC has announced new fuel rates for company cars. They apply to all journeys on or after 1 March 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 rises to 9p a mile. Electricity is not a fuel for car fuel benefit purposes.

Engine size            Petrol    LPG

1 400cc or less         13p     10p

1 401cc to 2 000cc   15p      11p

Over 2 000cc             23p     17p

Engine size             ...