HM Revenue & Customs (HMRC) has now published the company car advisory electric rate (AER) and advisory fuel rates (AFR) from 1 March 2023.
The AER for fully electric cars will rise from 8 pence to 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 with an engine size of 1400cc or less, the rate has gone down to 13 pence per mile, 1401cc to 2000cc has gone down to 15ppm, and over 2000cc has decreased to 20ppm. The LPG rate has stayed the same for up to 1400 at 10ppm and has decreased to 11ppm for 1401 to 2000 and 17ppm for over 2000cc.
The rates for diesel have gone down to: 13ppm for engine size of 1600cc or less, 15ppm for 1601cc to 2000cc and 20ppm for over 2000cc.
See the GOV.UK website for the Advisory fuel rates from 1 March including AER.
