Questions and Answers
New Advisory fuel rates
My employees have company cars, what are the new advisory fuel rates that they should be using to repay private fuel costs?
The advisory fuel rates are reviewed by HM Revenue and Customs (HMRC) quarterly. The following rates are to be used only where employers either reimburse employees for business travel in their company cars or require employees to repay the cost of fuel used for private travel.
The following rates apply from 1st September 2024:
| Engine size | Petrol - amount per mile | LPG - amount per mile |
|---|---|---|
| 1400cc or less | 13p | 11p |
| 1401cc to 2000cc | 15p | 13p |
| Over 2000cc | 24p | 21p |
The advisory electricity rate for fully electric cars is 7p per mile. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
| Engine size | Diesel - amount per mile |
|---|---|
| 1600cc or less | 12p |
| 1601cc to 2000cc | 14p |
| Over 2000cc | 18p |
You can use the previous fuel advisory rates for up to 1 month from the date any new rates apply.
If you require any help in this area, please feel free to contact our team today on 01306 735222 or enquire online here.
Date published 7 Jan 2020 | Last updated 10 Sep 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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