HM Revenue & Customs (HMRC) has published the company car advisory electric rate (AER) and advisory fuel rates (AFR) from 1 September 2023.
The AER for fully electric cars will rise from 9 pence to 10 pence per mile (ppm).
The BVRLA pushed for the AER to be increased in line with energy prices and for the rate to be regularly reviewed. Last year, the association welcomed the introduction of a quarterly review in line with the existing advisory fuel rates.
On the HMRC guidance page, there is also information about how AERs and AFRs are calculated. The latest rates are:
Petrol cars with an engine size of
- 1400cc or less: the rate has stayed the same at 13 pence per mile
- 1401cc to 2000cc: up to 16ppm
- over 2000cc: up to 25ppm.
LPG
- 1400cc or less: remains at 10ppm
- 1401cc to 2000cc: stayed the same at 12ppm
- over 2000cc: up to 19ppm
Diesel
- 1600cc or less: stayed the same at 12ppm
- 1601cc to 2000cc: remain at 14ppm
- over 2000cc: up to 19ppm
Hybrid cars are treated as either petrol or diesel cars for AFR purposes.
See the GOV.UK website for the Advisory fuel rates from 1 September including AER.
