Blog Search

Archives

Advisory Fuel Rates – MUST Be Effective 01 October 2023

The Advisory Fuel Rates (AFRs) have had their quarterly review and HMRC published revised rates from 01 September 2023. With rising fuel prices again, it’s not surprising there were changes – mainly for cars with a higher cc. The following rates are effective 01 September 2023 but HMRC say the old rates can be used for one month from this date. So, from 01 October 2023 you must be using the following rates (with the old rates in brackets and * indicating where there’s been a change):

Petrol (or hybrid)
Rate
1400cc or less
13p (13p)
1401 to 2000cc
16p (15p) *
Over 2000cc
25p (23p) *
LPG
Rate
1400cc or less
10p (10p)
1401 to 2000cc
12p (12p)
Over 2000cc
19p (18p) *
Diesel
Rate
1600cc or less
12p (12p)
1601 to 2000cc
14p (14p)
Over 2000cc
19p (18p) *

The Advisory Electricity Rate for fully-electric cars increased from 9p per mile to 10p.

There are important points worth repeating about these rates:

– They relate to mileage in company The rates for business mileage in private cars are at the (higher) Approved Mileage Allowance Payments (AMAPs)
– They are the rate of reimbursement to employees for business travel OR the rates used to calculate amounts employees should repay when they are required to make good the cost of any private travel
– Where you reimburse (or ask for repayment) at higher rates there’s a tax and National Insurance liability unless you can justify the fuel cost per mile is higher

The last point is important and if you do use rates greater than HMRC’s rates, you need to be able to demonstrate and justify why. Maybe fuel costs in your area are higher than HMRC’s UK average ones. It’s all about justifying which means more records to keep!

  • Latest news and testimonials

  • Latest News

    • September Q&A

      Q. I have two small businesses which are treated as a group for VAT purposes, so we only submit a single VAT return covering both …

      Read more
    • Making Tax Digital for Business: update

      In July, the Government confirmed that the Summer Finance Bill would be published in September, with the measures dropped from the pre-election Finance Bill being reintroduced …

      Read more
  • Testimonials

    • Partner – Solicitor

      I have worked with SBL over the last 10 years on numerous matters involving owner-managed business. They are professional, personable, knowledgeable and work incredibly hard to provide the best advice to their clients. I would have no hesitation in recommending SBL.

  • Don’t hesitate to ask

    SBL are here to help. With accountancy advice and tax planning experts on hand to guide you and your business on the pathway to success! You can call us on 020 7580 6822, or email us on info@sblaccoutants.com or if you’d prefer you can complete our Free Online Enquiry Form and one of the team will be in touch shortly.

    Don’t hesitate to ask

    Don’t hesitate to ask section

    • This field is for validation purposes and should be left unchanged.

    By submitting my details on this form, I consent to being contacted by a member of the SBL Accountants team by email or telephone. Privacy Policy