The new company car advisory fuel rates published by HMRC took effect from 1 December 2022. The advisory rates have increased for both LPG and fully electric vehicles, whereas there has been a 1 pence reduction for petrol vehicles.
The advisory electricity rate for reimbursing employees for business travel in fully electric company cars has risen from 5 pence to 8 pence per mile and going forward will be reviewed quarterly. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
The rates only apply when you either:
- reimburse employees for business travel in their company cars or
- require employees to repay the cost of fuel used for private travel.
You must not use these rates in any other circumstances.
If you have any queries regarding company cars, fuel rates or mileage reimbursement, please email our Taxperts or call one of our offices.