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
-
HMRC publishes penalty guidance for MTD IT
HMRC has published guidance on how penalties will apply under Making Tax Digital for Income Tax (MTD IT). With mandation approaching from April 2026, what do you need to know about the new regime?
-
Company car calculator
Want to know the amount of the benefit you will be taxed on by taking a company car? Easily work that out with our tool, you can even see what difference making a contribution to the cost of the car will have.
-
Pension relief calculator
Sometimes the tax relief you get on a pension is easy to work out, and sometimes it isn’t. Let our calculator do it for you and show the effect on your pension fund.