HMRC's Advisory Fuel Rates are rates at which HMRC will permit companies to reimburse company car owners for private journeys where fuel is not paid for by the employer.
The current rates can be found below.
For example, say you have a company petrol car with an engine capacity of less than 1,400 cc and you drive a 20 mile journey for business purposes on 5 March 2023. Your employer can reimburse you 13p * 20 miles, or £2.60, without creating any tax or National Insurance charge.
They are reviewed and set each quarter with rates for petrol, diesel, LPG and electric.
They are similar to, but not to be confused with, the Approved Mileage rates which are used to reimburse Directors and employees for business travel using their own (ie private) vehicles. You can find these below.
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