Advisory fuel rates

When you can use the mileage rates

These rates only apply to employees using a company car.

Use the rates when you either:

• reimburse employees for business travel in their company cars
• need employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

Reimburse employees for company car business travel

If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.

If your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation.

If you pay rates that are higher than the advisory rates but cannot show the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.

Employees to repay the cost of fuel used for private travel

There will be no fuel benefit charge if you correctly record all private travel mileage and use the correct rate (or higher), to work out how much your employees must repay you for fuel used for private travel.

You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.

How rates are calculated

HMRC review rates quarterly on:

• 1 March
• 1 June
• 1 September
• 1 December

The mean miles per gallon (MPG) is taken from manufacturers’ information, taking into account annual sales to businesses (Fleet Audits average 2020 to 2022).

For liquefied petroleum gas (LPG), the MPG used is 20% lower than for petrol due to lower volumetric energy density.

The ‘rates per mile’ calculated in these tables are shown rounded to one decimal place, but the final advisory fuel rates are rounded to the nearest whole penny.

Rates per mile which end in 0.5 are rounded down to the nearest whole penny for the advisory fuel rate when the underlying unrounded figure ends in a number less than 0.5 (for example 0.487).

When the underlying unrounded figure ends in a number greater than 0.5 (for example 0.513) it is rounded up to the nearest whole penny.

The latest petrol and diesel prices are taken from the Department for Business, Energy Security and IndustrialNet StrategyZero and the LPG (UK average) is from the Automobile Association website.

The advisory electric rate for fully electric cars is calculated using electrical price data from:

• Department for Business, Energy &Security Industrialand StrategyNet Zero (BEISDESNZ)
• Office for National Statistics (ONS)
• car electrical consumption rates from the Department for Transport (DfT)
• annual car sales volumes to businesses (Fleet Audits average for the last 3 years)

The BEISDESNZ annually published “pence per kWhr” cost is uprated by the quarterly ONS Consumer Prices Index for electricity to account for quarterly price variations.

The value of the Annual Equivalent Rate is then calculated by taking the cost of electricity per mile for each model provided by the DfT and electricity price data from BEISDESNZ and ONS. Based on company car sales data across the last 3 years, a weighted average value of the electrical costs per mile for a fully electric car is then calculated.

The advisory fuel rates are worked out from the fuel prices in these tables.

Petrol

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	49.5	146.2152.4 pence	664.5692.8 pence	13.414.0 pence	1314 pence
1401 to 2000	42.1	146.2152.4 pence	664.5692.8 pence	15.816.5 pence	16 pence
Over 2000	26.7	146.2152.4 pence	664.5692.8 pence	24.926.0 pence	2526 pence

Diesel

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1600	56.7	148.2160.4 pence	673.9729.1 pence	11.912.9 pence	1213 pence
1601 to 2000	48.0	148.2160.4 pence	673.9729.1 pence	1415.2 pence	1415 pence
Over 2000	36.3	148.2160.4 pence	673.9729.1 pence	18.620.1 pence	1920 pence

LPG

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	39.6	87.386.7 pence	396.9394.1 pence	10 pence	10 pence
1401 to 2000	33.7	87.3 86.7 pence	396.9394.1 pence	11.811.7 pence	12 pence
Over 2000	21.3	87.3 86.7 pence	396.9394.1 pence	18.618.5 pence	1918 pence

Electric

From 1 SeptemberDecember 2023 the advisory electric rate for fully electric cars will be 109 pence per mile.

Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.

You can use the previous rates for up to 1 month from the date any new rates apply.

From 1 SeptemberDecember 2023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1314 pence	10 pence
1401cc to 2000cc	16 pence	12 pence
Over 2000cc	2526 pence	1918 pence

Engine size	Diesel — rate per mile
1600cc or less	1213 pence
1601cc to 2000cc	1415 pence
Over 2000cc	1920 pence

From 1 JuneSeptember 2023 to 3130 AugustNovember 2023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	10 pence
1401cc to 2000cc	1516 pence	12 pence
Over 2000cc	2325 pence	18 pence

Engine size	Diesel — rate per mile
1600cc or less	12 pence
1601cc to 2000cc	14 pence
Over 2000cc	1819 pence

From 1 MarchJune 2023 to 31 MayAugust 2023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	10 pence
1401cc to 2000cc	15 pence	1112 pence
Over 2000cc	23 pence	1718 pence

Engine size	Diesel — rate per mile
1600cc or less	1312 pence
1601cc to 2000cc	1514 pence
Over 2000cc	2018 pence

From 1 DecemberMarch 20222023 to 2831 FebruaryMay 2023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1413 pence	10 pence
1401cc to 2000cc	1715 pence	1211 pence
Over 2000cc	2623 pence	1817 pence

Engine size	Diesel — rate per mile
1600cc or less	1413 pence
1601cc to 2000cc	1715 pence
Over 2000cc	2220 pence

From 1 SeptemberDecember 2022 to 3028 NovemberFebruary 20222023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1514 pence	910 pence
1401cc to 2000cc	1817 pence	1112 pence
Over 2000cc	2726 pence	1718 pence

Engine size	Diesel — rate per mile
1600cc or less	14 pence
1601cc to 2000cc	17 pence
Over 2000cc	22 pence

From 1 JuneSeptember 2022 to 3130 AugustNovember 2022

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1415 pence	9 pence
1401cc to 2000cc	1718 pence	11 pence
Over 2000cc	2527 pence	1617 pence

Engine size	Diesel — rate per mile
1600cc or less	1314 pence
1601cc to 2000cc	1617 pence
Over 2000cc	1922 pence

From 1 MarchJune 2022 to 31 MayAugust 2022

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1314 pence	89 pence
1401cc to 2000cc	1517 pence	1011 pence
Over 2000cc	2225 pence	1516 pence

Engine size	Diesel — rate per mile
1600cc or less	1113 pence
1601cc to 2000cc	1316 pence
Over 2000cc	1619 pence

From 1 DecemberMarch 20212022 to 2831 FebruaryMay 2022

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	98 pence
1401cc to 2000cc	15 pence	10 pence
Over 2000cc	22 pence	15 pence

Engine size	Diesel — rate per mile
1600cc or less	11 pence
1601cc to 2000cc	13 pence
Over 2000cc	16 pence

From 1 SeptemberDecember 2021 to 3028 NovemberFebruary 20212022

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1213 pence	79 pence
1401cc to 2000cc	1415 pence	810 pence
Over 2000cc	2022 pence	1215 pence

Engine size	Diesel — rate per mile
1600cc or less	1011 pence
1601cc to 2000cc	1213 pence
Over 2000cc	1516 pence

Find rates from an earlier date.