Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 14 November 2022 to Question 82307 on Car Allowances, if his Department will publish the findings of the most recent quarterly review of advisory fuel rates.

The Advisory Fuel Rates (AFRs) apply when an employer reimburses an employee for business travel in a company car, or when an employee reimburses their employer for the cost of fuel used for private travel.

The AFRs are reviewed every quarter and reflect average miles per gallon (MPG) for vehicle types (calculated from manufacturers’ information, taking into account annual sales to businesses), combined with the latest petrol and diesel prices.

AFRs were last reviewed and updated on 1 December 2022 and the detail of current rates can be found on the Gov.UK website: https://www.gov.uk/guidance/advisory-fuel-rates

AFRs are not mandatory, and employers and employees can agree to use different rates to reflect scenarios in which a car is more fuel efficient or where the fuel cost per mile of business travel is higher. Where an employer pays a rate higher than the published AFRs, no tax charge will arise if the employee is able to demonstrate there is no profit element.

AFRs are next due to be reviewed by HMRC on 1 March 2023.