HMRC advisory fuel rates for 2023

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

If you wish to read a more in-depth explanation of how AFR works, you can read our dictionary article about HMRC advisory fuel rates.

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

Diesel

LPG (Liquefied Petroleum Gas) 

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. 

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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.

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