Latest advisory fuel rates published

Published: 1st December 2023

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

Engine size Diesel
1,600cc or less 13p
1,601cc to 2,000cc 15p
Over 2,000cc 20p

The rate for electric vehicles has dropped to 9p. These rates apply from 1 December 2023, but you can still use the previous rates for one month from that date. For a full list of current and historic rates, click here.

a fuel station at night