HM Revenue and Customs (HMRC) has announced an increase in the advisory fuel rates for company car drivers effective June 1. The new rate for petrol cars with engine sizes over 2,000cc is now 26 pence per mile, a significant increase from 15p in 2022. For smaller vehicles, the rates are set at 14p per mile for those with engines up to 1,400cc and 17p per mile for engines between 1,401cc and 2,000cc. These rates are adjusted quarterly based on fuel costs and are intended to guide reimbursement for employees using company cars for business travel or personal use. According to Seat, a Spanish car manufacturer, the rates help ensure that employees are not taxed on fuel costs when reimbursed at the advisory rates. If reimbursement exceeds these rates, employees may face additional tax liabilities unless justified. HMRC emphasizes that these rates are strictly for company car use and should not be applied in other contexts.