The advisory fuel rates published by HMRC set fixed amounts that can be paid to an employee using a company car for business mileage, without income tax consequences. 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.

HMRC has now published the advisory rates applicable from 1 December 2023, with a 1p increase for all diesel car users.

The rates per mile will be:

Engine size	Petrol	LPG
1,400cc or less	14p	10p
1,401cc to 2,000cc	16p	12p
Over 2000cc	26p	18p
Engine size Diesel 1,600cc or less 13p 1,601cc to 2,000cc 15p Over 2,000cc 20p

The rate for electric vehicles has dropped to 9p. These rates apply from 1 December 2023, but you can still use the previous rates for one month from that date. For a full list of current and historic rates, click here.