HMRC advisory fuel rates for company car users from 1 June 2024

HMRC advisory fuel rates for company car users from 1 June 2024

May 31, 2024

HMRC has cut advisory fuel rates for users of company electric vehicles, while petrol and diesel rates increase

The advisory fuel rates that apply from 1 June 2024 have gone up for petrol and diesel engines by between 1p and 2p per mile, while LPG rates remain unchanged.

The previous rates, effective from March 2024, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

From 1 June 2024 the advisory electricity rate for fully electric cars will be cut to 8p per mile from 9p. In line with advisory fuel rates, this electric rate is now being reviewed quarterly.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.

Advisory fuel rates from 1 June 2024

Engine size Petrol – amount per mile (previous) LPG – amount per mileĀ (previous)
1400cc or less 14p (13p) 11p (11p)
1401cc to 2000cc 16p (15p) 13p (13p)
Over 2000cc 26p (24p) 21p (21p)

 

Engine size Diesel – amount per mile (previous)
Up to 1600cc 13p (12p)
1601cc to 2000cc 15p (14p)
Over 2000cc 20p (19p)

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.