Latest AFRs released. What's new?
HMRC has published its latest advisory fuel rates for company cars. Diesel rates have been cut, reflecting falling pump prices. What’s the full story?
Advisory fuel rates (AFRs) for company cars are updated by HMRC on a quarterly basis. The rates determine the amount that can be paid to an employee using a company car for business mileage, without income tax consequences. They can also be used to require employees to reimburse the cost of fuel for any private travel. 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. AFRs for the quarter starting 1 June 2023 have been published. The diesel rates have all been cut, but those for unleaded remain unchanged. Two of the LPG rates have increased. The 9p per mile rate for wholly electric vehicles remains the same.
Petrol
- 1,400cc or less - 13p
- 1,401cc to 2,000cc - 15p
- Over 2,000cc - 23p
LPG
- 1,400cc or less - 10p
- 1,401cc to 2,000cc - 12p
- Over 2,000cc - 18p
Diesel
- 1,600cc or less - 12p
- 1,601cc to 2,000cc - 14p
- Over 2,000cc - 18p
Related Topics
-
Budget 2025: the key announcements
The Chancellor announced many changes to the tax system, with some coming into effect immediately and others in several years. What are the headline changes?
-
Static company car advisory fuel rates
The amount that employers can reimburse staff for business travel in company cars from 1 December 2025 has been announced. What's changing?
-
Extracting property from your company
As your retirement date is fast approaching, you’re looking to sell your company, but you want to keep the property it owns. A friend said you can buy the property from the company, but what are the tax consequences and is there a better option?