HMRC: New advisory fuel rates

HMRC have released their latest Advisory Fuel Rates to be used from 1^st March 2023.

These rates should be used when you:-

• 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.

Rates to be used from 1^st March 2023 are:-

From 1 December 2022 to 28 February 2023 rates should have been:-

Electric

From 1 March 2023 the advisory electricity rate for fully electric cars will rise from 8 pence to 9 pence per mile.

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

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

From 1 March 2023

Business Mileage in personal cars

If your employees use their own vehicle for work purposes, you can currently reimburse them 45p per mile tax free for any business miles.

AAT are calling for the mileage allowance to better reflect the current cost of running and maintaining personal vehicles used for business travel.

The last time the rate was changed, was back in April 2011 for the first 10,000 miles and the rates for mileage in excess of the limit, remains unchanged since 2001.

Disclaimer - All information in this post was correct at time of writing.