HM Revenue & Customs (HMRC) has now published the company car advisory electric rate (AER) and advisory fuel rates (AFR) from 1 June 2023.
The AER for fully electric cars will remain at 9 pence per mile (ppm). Hybrid cars are treated as either petrol or diesel cars for AFR purposes.
On the HMRC guidance page, there is also information about how AERs and AFRs are calculated.
For petrol cars of all engine sizes the rates remain the same. The LPG rate has risen to 12 ppm for 1401cc to 2000cc, 18ppm for over 2000cc, the rate for 1400 or less remains the same.
The rates for diesel have gone down to: 12ppm for engine size of 1600cc or less, 14ppm for 1601cc to 2000cc and 18ppm for over 2000cc.
See the GOV.UK website for the Advisory fuel rates from 1 June including AER.
Also see the BVRLA’s latest blog: Stop paying your business EV drivers using the AER
