Latest AFRs released. What's new?
HMRC has published its latest advisory fuel rates for company cars. Diesel rates have been cut, reflecting falling pump prices. What’s the full story?
Advisory fuel rates (AFRs) for company cars are updated by HMRC on a quarterly basis. The rates determine the amount that can be paid to an employee using a company car for business mileage, without income tax consequences. They can also be used to require employees to reimburse the cost of fuel for any private travel. It's possible to use a higher rate, but you must show that the actual fuel cost per mile is greater than the advisory rates. AFRs for the quarter starting 1 June 2023 have been published. The diesel rates have all been cut, but those for unleaded remain unchanged. Two of the LPG rates have increased. The 9p per mile rate for wholly electric vehicles remains the same.
Petrol
- 1,400cc or less - 13p
- 1,401cc to 2,000cc - 15p
- Over 2,000cc - 23p
LPG
- 1,400cc or less - 10p
- 1,401cc to 2,000cc - 12p
- Over 2,000cc - 18p
Diesel
- 1,600cc or less - 12p
- 1,601cc to 2,000cc - 14p
- Over 2,000cc - 18p
Related Topics
-
Review how much VAT charged on sales?
A recent Tribunal case ruled that HMRC’s logic was flawed in dealing with a “what is the supply” challenge. Does this mean you should check that you are charging VAT correctly on your sales if there could be doubt about what you are selling?
-
Are buy-to-let companies worth the hype?
There’s no doubt that landlords have been on the receiving end of multiple tax hikes in recent years. So called “property experts” will tell you that the best tax-saving strategy is to operate through a company. Are they right?
-
Electronic VAT return