Latest advisory fuel rates published
The HMRC-approved amount that employers can reimburse staff for business travel in company cars changes from 1 December 2023. What are the new rates?
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 |
Petrol |
LPG |
|
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1,400cc or less |
14p |
10p |
|
||||||||||
1,401cc to 2,000cc |
16p |
12p |
|
||||||||||
Over 2000cc |
26p |
18p |
|
||||||||||
|
|
|
|||||||||||
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.
Related Topics
-
Deadline for child benefit tax
Changes to the high income child benefit charge mean some couples will pay less tax. Others can also benefit but must take steps to do so. What’s required and when?
-
Can dividends ever be paid from loss-making company?
Dividends are generally the most tax-efficient form of income you can take from your company but they can only be paid out of profits. Despite this, might there be a way for your loss-making company to pay you a dividend?
-
New guidance on commuting expenses for hybrid workers
You probably know that you can’t claim tax relief for the expenses associated with travelling to your usual place of work. However, what is the position if you're a “hybrid” worker? The guidance on this has recently been updated for clarity, so what's the answer?