Latest update: 23 April 2024 - 2 min read

HMRC advisory fuel rates for 2023

Looking for the current rates? The rates on this page have been superseded. See the HMRC advisory fuel rates for 2026 for the figures that apply from 1 September 2026.

HMRC updates the fuel advisory rates four times a year. The reviewed rates are based on current fuel prices.

The advisory fuel rates are to be used in only two specific instances:

When an employer reimburses an employee for business travel in a company car
When an employee reimburses an employer for private travel in a company car

The updated HMRC fuel advisory rates for 2023 take effect on the following four dates:

1st of March
1st of June
1st of September
1st of December

HMRC fuel advisory rates for March, April and May 2023

Below you will find the rates for petrol, diesel, LPG, and electric vehicles from HMRC. The AFR are per mile. You will notice that the rates vary depending on the engine displacement of the car.

Petrol

Engine displacement (cc)	Advisory fuel rate
Up to 1400 cc	13 pence
1401 to 2000 cc	15 pence
Over 2000 cc	23 pence

Diesel

Engine displacement (cc)	Advisory fuel rate
Up to 1600 cc	13 pence
1601 to 2000 cc	15 pence
Over 2000 cc	20 pence

LPG (Liquefied Petroleum Gas)

Engine displacement (cc)	Advisory fuel rate
Up to 1400 cc	10 pence
1401 to 2000 cc	11 pence
Over 2000 cc	17 pence

Electric

The HMRC advisory rate for electric cars has risen from 8 pence per mile to 9 pence from March 1st 2023.

If you drive a hybrid car, you have to use the advisory fuel rate for either petrol or diesel, depending on the car in question.

Tracking your mileage

When claiming or providing reimbursement, you are required to keep an accurate record of your travel. If you don’t, you run the risk that HMRC considers your reimbursement a benefit, and therefore taxing it as income.

To ensure that your records are HMRC compliant we advise that you use an automated mileage logbook like the one we have developed here at Driversnote.

FAQ

As long as the reimbursement is done at or below the HMRC advisory fuel rate for 2023, the reimbursement is not taxed. If the employee however is reimbursed at a higher rate than the HMRC advises, the excess is considered taxable profit and as earnings for Class 1 National Insurance purposes - unless you have proof that the higher reimbursement is because your actual cost per mile is higher than the AFR.

No, companies are not required to use the Advisory Fuel Rates (AFR). However, if a company chooses to reimburse its employees for fuel expenses using a different rate, they must be able to justify the rate used. Using the AFR rates simplifies the reimbursement process and reduces the risk of tax complications.

HMRC advisory fuel rates for 2023