New Advisory Fuel Rates From June 2023 – Electric Rate Static
COMPANY car drivers will have new car mileage rates to use from the beginning of June 2023. Called Advisory Fuel Rates (AFRs), these are used whether you drive an electric car or a diesel or petrol company car. They are banded by engine size (not electric cars), with each banding given a pence per mile cost.
For drivers in an electric company car, the rates remain at 9p per mile.
Advisory Electric Rate (AER) For Electric Company Cars
Fully Electric Cars | Advisory Electric Rate (AER) |
All models | 9 pence (no change) |
Rates applicable from 01 June 2023
For diesel drivers the charges have dropped by up to 2p per mile.
Advisory Fuel Rates For Diesel Company Cars
Diesel (including hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
Up to 1,600cc | 12 pence (minus 1p) |
1,601cc – 2,000 cc | 14 pence (minus 1p) |
Over 2,000cc | 18 pence (minus 2p) |
Rates applicable from 01 June 2023
There is no change for those drivers in petrol fleet cars.
Advisory Fuel Rates For Petrol Company Cars
Petrol (including hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
Up to 1,400cc | 13 pence (no change) |
1,401cc – 2,000 cc | 15 pence (no change) |
Over 2,000cc | 23 pence (no change) |
Rates applicable from 01 June 2023
These AFRs can be used to claim back fuel costs from your employer for the number of business miles you have completed in a calendar month.
Alternatively, if your business pays for all your fuel or electricity – say on a fuel card – it can be used by payroll to deduct your private mileage.
What If I Drive A Hybrid?
If you drive a hybrid company car, you use the figure for the car’s engine. So a petrol hybrid, or a petrol plug-in hybrid, uses the petrol AFRs.
The rates are calculated by HMRC using figures supplied by the Business, Energy & Industrial Strategy (BEIS), as well as information on energy consumption supplied by the Department for Transport (DfT). They reflect the general movement of fuel or electricity costs across the quarter.
AFRs are reviewed quarterly in an effort to reflect fuel and energy costs. The next time the AFRs are scheduled to be changed is 01 September.
Use AFRs To Avoid Paying Highly Expensive Free Fuel Tax
AFRs are designed to reimburse company car drivers for the fuel used on business trips. If they are not used correctly, drivers could be liable for Company Car Fuel Benefit, a tax on supplying drivers free fuel. Except the cost of the tax makes it anything but ‘free’. See HMRC’s Fuel Benefit Charges For Cars And Vans. You can find out the cost to you of using free fuel with this calculator from Comcar.
Honda Super N Car Review
Honda is back in the electric city-car game. Does the Super N work for fleets? We find out.
James Pestell Joins Lorna McAtear As Vice Chair of the Association of Fleet Professionals
CONGRATULATIONS to James Pestell, who has been elected as the new Joint Vice Chair of the Association of Fleet Professionals (AFP). James was selected at the organisation’s Annual General Meeting, held at the NEC, Birmingham on Tuesday 6th October. The National Sales Manager at IFC Group, James has more than two decades of experience in
Mitsubishi Outlander Car Review
Mitsubishi is back and so is the Outlander PHEV. We find out how it performs for fleets.
Jeep Compass Car Review
In a market bursting with SUVs, the Jeep Compass succeeds at standing out, but does it work for fleet users?
AFP Reshapes Advanced Course To Reflect Changing Needs Of Fleet Managers
THE highest level course offered by the Association of Fleet Professionals (AFP) has been completely revised and refreshed with a new format and content. Fleet Vehicle Management – Advanced is the final step in the AFP Academy’s development pathway for fleet roles, following Introductory, Foundation and Strategic certifications. Successful completion results in delegates becoming a
i247 Group Strengthens Senior Team As It Targets Extended Growth
Pictured: L-R Phil Greaves and Loren Roche at the i247 Group headquarters in Poole THE i247 Group, a leading provider of technology-driven fleet management solutions, has strengthened its senior team with two strategic appointments. The move supports the business’s continued expansion following investment from private equity firm LDC. Phil Greaves joins the Group as Key
JOIN THE DISCUSSION
Why not join the conversation on SME fleets – visit our LinkedIn SME Fleet Discussion page