The table below sets out the HMRC advisory fuel rates that apply from 1 June 2023. These are published quarterly now due to the volatility in petrol and diesel prices in recent years. Where the employer provides an employee with a company car there may be an additional benefit in kind on the provision of fuel for private journeys which needs to be reported on form P11d.
This additional benefit is based on a notional list price for the vehicle of £25,300 for 2022/23 which applies irrespective of the original list price of the vehicle normally used to compute the taxable benefit. That figure is then multiplied by the CO2/km percentage for that vehicle.
For example, the Range Rover Evoke S AWD Automatic MHEV has a current list price of £41,245. The CO2 emissions data on the Landrover website is 168g/km for this vehicle, which means that the fuel benefit is 37% multiplied by £25,300 = £9,361.
For a higher rate taxpayer that would result in a tax liability of £3,744. That would be an awful lot of fuel!
In addition, the employer would have a Class 1A national insurance liability of £1,360 (14.53% for 2022/23).
Provided private fuel is fully reimbursed, the fuel benefit does not apply. This is an all or nothing benefit and unless there is full reimbursement there is an additional taxable benefit. The deadline for reimbursing private fuel is 6 July 2023 for the 2022/23 tax year.
ADVISORY FUEL RATE FOR COMPANY CARS
The table below sets out the HMRC advisory fuel rates from 1 June 2023. These are the suggested reimbursement rates for employees’ private mileage using their company car.
Where the employer does not pay for any fuel for the company car these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 13p | 10p | |
| 1600cc or less | 12p
(13p) |
||
| 1401cc to 2000cc | 15p
|
12p
(11p) |
|
| 1601 to 2000cc | 14p
(15p) |
||
| Over 2000cc | 23p
|
18p
(20p) |
18p
(17p) |
Where there has been a change the previous rate is shown in brackets.
You can also continue to use the previous rates for up to 1 month from the date the new rates apply.
Note that for hybrid cars you must use the petrol or diesel rate. For fully electric vehicles the rate is 9p per mile.