HMRC have published new advisory fuel rates for company car drivers which will apply from 1 March 2024.

This is a freeview 'At a glance' guide to advisory fuel rates for company car drivers. 

At a glance

The rates from 1 June 2024 

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

14p

 

11p

8p

1,600cc or less

 

13p

 

8p

1,401cc - 2,000cc

16p

 

13p

8p

1,601cc to 2,000cc

 

15p

 

8p

Over 2,000cc.

26p

20p

21p

8p

*Fully electric cars only

The old rates may be used until 30 June 2024, see below. 

Advisory fuel rates are set by HMRC

  • Employers can use these rates to reimburse Company car drivers for business fuel.
  • These rates can also be used if employees are required to repay the cost of fuel used for private travel.
  • These rates should not be used in relation to Vans.
  • The electric rate is reviewed quarterly from 1 March 2023. 
  • Hybrid cars can be treated as either petrol or diesel cars for this purpose.
  • These amounts also apply for VAT purposes, but employers can only reclaim input VAT if the employee supplies a receipt.

On 1 December 2017, as part of the Taxation of employee expenses: Response to the call for evidence, the government announced it had considered the position and had no plans to change the current system; in particular it would not introduce specific rates for hybrid and electric cars. However, in August 2018 HMRC announced that from 1 September 2018:

  • They would accept that if employers pay up to the advisory rate, which was at that time four pence per mile, when reimbursing employees for business travel in a fully electric company car there is no profit for Income Tax or earnings for National Insurance (NI) purposes.
  • Employers can use their own rate if it better reflects circumstances, for example, if their cars are more efficient, or if the cost of business travel is higher than the guideline rate. 
  • If employers pay a rate that is higher than the advisory rate and cannot demonstrate the electricity cost per mile is higher, they must treat any excess as taxable income and as earnings for Class 1 National Insurance purposes.

The rates from 1 March 2024 are:

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

13p

 

11p

9p

1,600cc or less

 

12p

 

9p

1,401cc - 2,000cc

15p

 

13p

9p

1,601cc to 2,000cc

 

14p

 

9p

Over 2,000cc.

24p

19p

21p

9p

Rates from 1 December 2023

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

14p

 

10p

9p

1,600cc or less

 

13p

 

9p

1,401cc - 2,000cc

16p

 

12p

9p

1,601cc to 2,000cc

 

15p

 

9p

Over 2,000cc.

26p

20p

18p

9p

 *Fully electric cars only

Rates from 1 September 2023

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

13p

 

10p

10p

1,600cc or less

 

12p

 

10p

1,401cc - 2,000cc

16p

 

12p

10p

1,601cc to 2,000cc

 

14p

 

10p

Over 2,000cc.

25p

19p

19p

10p

 *Fully electric cars only

Rates from 1 June 2023 

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

13p

 

10p

9p

1,600cc or less

 

12p

 

9p

1,401cc - 2,000cc

15p

 

12p

9p

1,601cc to 2,000cc

 

14p

 

9p

Over 2,000cc.

23p

18p

18p

9p

 *Fully electric cars only 

Rates from 1 March 2023

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

13p

 

10p

9p

1,600cc or less

 

13p

 

9p

1,401cc - 2,000cc

15p

 

11p

9p

1,601cc to 2,000cc

 

15p

 

9p

Over 2,000cc.

23p

20p

17p

9p

*Fully electric cars only   

Rates from 1 December 2022

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

14p

 

10p

8p

1,600cc or less

 

14p

 

8p

1,401cc - 2,000cc

17p

 

12p

8p

1,601cc to 2,000cc

 

17p

 

8p

Over 2,000cc.

26p

22p

18p

8p

*Fully electric cars only

Rates from 1 September 2022

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

15p

 

9p

5p

1,600cc or less

 

14p

 

5p

1,401cc - 2,000cc

18p

 

11p

5p

1,601cc to 2,000cc

 

17p

 

5p

Over 2,000cc.

27p

22p

17p

5p

*Fully electric cars only

Rates from 1 June 2022

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

14p

 

9p

5p

1,600cc or less

 

13p

 

5p

1,401cc - 2,000cc

17p

 

11p

5p

1,601cc to 2,000cc

 

16p

 

5p

Over 2,000cc.

25p

19p

16p

5p

*Fully electric cars only

Rates from 1 March 2022

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

13p

 

8p

5p

1,600cc or less

 

11p

 

5p

1,401cc - 2,000cc

15p

 

10p

5p

1,601cc to 2,000cc

 

13p

 

5p

Over 2,000cc.

22p

16p

15p

5p

*Fully electric cars only

Rates from 1 December 2021

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

13p

 

9p

5p

1,600cc or less

 

11p

 

5p

1,401cc - 2,000cc

15p

 

10p

5p

1,601cc to 2,000cc

 

13p

 

5p

Over 2,000cc.

22p

16p

15p

5p

*Fully electric cars only

Rates from 1 September 2021

Engine size

Petrol

Diesel

LPG

Electric*

1,400cc or less

12p

 

7p

4p

1,600cc or less

 

10p

 

4p

1,401cc - 2,000cc

14p

 

8p

4p

1,601cc to 2,000cc

 

12p

 

4p

Over 2,000cc.

20p

15p

12p

4p

*Fully electric cars only

Earlier rates


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