HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 December 2023, increasing diesel rates
The advisory fuel rates that apply from 1 December 2023 have increased by 1p for some sizes of petrol engines, while diesel vehicle rates are up by 1p for all engine sizes. There is a 1p decrease in LPG engine rates for 2000cc plus vehicles compared with the September 2023 rates while the electric rate is cut.
The previous rates, effective from September 2023, can be used for up to one month from the date the new rates apply.
The rates only apply in the following circumstances:
- reimburse employees for business travel in their company cars; or
- require employees to repay the cost of fuel used for private travel.
These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.
