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.



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