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 reminds employers about payrolling benefits deadlines
HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know?
-
Why do frozen mileage rates affect VAT?
Your business pays a fixed mileage allowance to staff who use their private cars for business travel. The rates published by HMRC have been frozen since 2011 but is this relevant to determine how much input tax you can claim on the payments?
-
HMRC restarts direct recovery of tax debts from bank accounts
HMRC has resumed use of its Direct Recovery of Debts (DRD) powers, enabling it to recover unpaid tax directly from the bank accounts of businesses and individuals who have ignored repeated attempts to settle outstanding liabilities. What does this mean in practice for business owners and directors?
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.