HM Revenue & Customs (HMRC) has published the company car advisory electric rate (AER) and advisory fuel rates (AFR) from 1 December 2023.
The AER for fully electric cars will go back down to 9 pence per mile (ppm) from 10ppm. The AER is decreased or increased in line with energy prices and regularly reviewed quarterly with the advisory fuel rates.
Members and their customers are advised to shop around when it comes to home charging and make sure they are getting the best energy tariff available to suit their circumstances. Helpful guidance can be found on EVA England’s Useful Resources web page.
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: up to 14ppm
- 1401cc to 2000cc: stayed the same at 16ppm
- over 2000cc: up to 26ppm.
LPG
- 1400cc or less: stayed the same at 10ppm
- 1401cc to 2000cc: stayed the same at 12ppm
- over 2000cc: stayed the same at 19ppm
Diesel
- 1600cc or less: up to 13ppm
- 1601cc to 2000cc: up to 15ppm
- over 2000cc: up to 20ppm
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 December including AER.
