Latest advisory fuel rates for company car drivers
The amount that employees can be reimbursed for business travel in company cars changed from 1 September 2024. What are the new rates?
Advisory fuel rates for company cars are updated by HMRC on a quarterly basis due to fluctuations in fuel prices. The rates determine the amount that can be paid to an employee using a company car for business mileage, free from income tax. HMRC has published the advisory rates applicable from 1 September 2024. Note that the rates for diesel and petrol engines have decreased, whilst LPG rates have remained static.
The rates per mile are:
|
Engine size |
Petrol |
LPG |
|
1,400cc or less |
13p |
11p |
|
1,401cc to 2,000cc |
15p |
13p |
|
Over 2,000cc |
24p |
21p |
|
Engine size |
Diesel |
|
1,600cc or less |
12p |
|
1,601cc to 2,000cc |
14p |
|
Over 2,000cc |
18p |
The rate for fully electric vehicles is also reduced to 7p per mile. Hybrid cars are treated as either petrol or diesel cars for the purposes of advisory fuel rates.
These rates apply from 1 September 2024, but you can still use the previous rates for one month from that date. If you have business mileage for September, you will be slightly better off by using the rates for the current quarter.
Related Topics
-
Should you use simplified expenses?
The flat rate expense you can claim for business journeys if you’re self-employed has increased to 55p per mile. Can you use simplified expenses for motoring costs and is it more tax efficient to do so?
-
Topping up your spouse’s pension
Company pension contributions are highly tax efficient. As you’ve maxed out your contributions you want to begin adding to your spouse’s pension pot. Can your company make the contributions or do you need to pay out of your own pocket?
-
Electronic VAT return and payment due