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
-
What can you learn from HMRC’s input tax toolkit?
You know that penalties can be charged on careless errors and many mistakes relate to input tax being wrongly claimed. How can HMRC’s input tax guidance help your business to claim the right amount?
-
A £3,000 side-hustle allowance: more generous than it looks?
People making money from small side businesses will have more room to earn without paying income tax, following a Budget decision to triple the trading allowance. However, the figure relates to what you receive before expenses, not the profit you keep. Will the £3,000 allowance actually save you tax?
-
Electronic VAT return and payment due


This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.