Change of fuel flat rates in the UK for the year 2023

HMRC has changed the fuel flat rates in the UK for 01 December 2022. The old flat rates can still be used in December, but the new flat rates will be compulsory from January 2023.

Engine Size Petrol LPG
1400cc or less 14p 10p
1401cc to 2000cc 17p 12p
Over 2000cc 26p 18p


Engine Size Diesel
1600cc or less 14p
1601cc to 2000cc 17p
Over 2000cc 22p

(changed fuel flat rates are highlighted in red).

The fuel flat rates for hybrid vehicles are based on the flat rates for petrol/diesel (depending on the fuel used).

The recommended flat rate for all-electric vehicles is 8 pence per mile.

These flat rates can be used if

  • The employee pays the cost of refuelling and the employer reimburses the employee for fuel costs for miles travelled on business, or
  • The employer advances the cost of fuel and the employee reimburses the employer for miles driven privately.

IAC Note: The amended fuel allowances will form part of the UK monthly pay statement if the employee is provided with a car or reimbursed as part of travel expense claims.



Learn more about our consulting services: Consulting services of the IAC

Related Posts

Kai Mütze, AWF Kassel 2019

Across the world in 120 minutes – your journey with the Außenwirtschaftsforum

From Russia to the USA – passing through the UK and China? No problem with the Außenwirtschaftsforum on its trip around the world. In 120 minutes, pilots and travel guests flew to the various destinations...
Flagge UK

United Kingdom: Passport mandatory for entry as of 01.10.2021

The UK Department for Transport is urgently advising that, from 1 October 2021, passports will no longer be sufficient for EU, EEA and Swiss nationals to enter the UK.

Latest blogs on global assignments

Did they come to stay?
18. April 2023
Salary determination for expatriates
12. April 2023
Application of the daily wage tax table – Significantly higher expenses for employees with limited tax liability
12. April 2023
USA: USCIS plans to increase fees
27. February 2023
Travel expenses and travel expense reimbursements for business and work-related trips abroad from 01.01.2023
31. January 2023
LAG Hamburg: Effectiveness of Hypotax Agreements between Employer and Employee
19. January 2023

Get the latest information on "International Personnel Management - assignments worldwide".