Lentells Limited

CHARD 01460 64441 | SEATON 01297 20584 | TAUNTON 01823 286274 | PAYROLL 01460 68700
chard@lentells.co.uk | seaton@lentells.co.uk | taunton@lentells.co.uk | payroll@lentells.co.uk

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Thursday, 26 January 2023 16:07

Electric Car Fuel Allowances

If an employee is running a pure electric company car but paying for the re-charging themselves they can charge per business mile driven. 

HMRC have created an Advisory Electric Rate (AER) to go alongside the Advisory Fuel Rates (AFR), which are both reviewed quarterly. AER is lower than AFR to reflect the savings in running costs. Both the AER and AFR will be reviewed quarterly at the same time from December 2022. 

From 1 December 2022, the advisory electric rate for fully electric cars rose from 5p to 8p per mile. Hybrid cars are treated as either petrol or diesel for this purpose. You can use the previous rates for up to 1 month from the date the new rates apply.

The AER is calculated using electric price data from the Department for Business, Energy & Industrial Strategy, the Office of National Statistics, and, electrical consumption rates from the Department for Transport.

Petrol, Diesel and LPG rates from 1 December 2022 are as follows;

 

Engine size

Petrol - amount per mile

LPG - amount per mile

1400cc or less

14p

10p

1401cc to 2000cc

17p

12p

Over 2000cc

26p

18p

 

Engine size

Diesel - amount per mile

1600cc or less

14p

1601cc to 2000cc

17p

Over 2000cc

22p

        

 
 

Chard Office

17-18 Leach Road 
Chard Business Park 
Chard
Somerset 
TA20 1FA

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01460 64441

Seaton Office

Kingsway
50 Fore Street
Seaton
Devon
EX12 2AD

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01297 20584

Taunton Office

Ash House, Cook Way
Bindon Road
Taunton
Somerset
TA2 6BJ

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01823 286274