HMRC has published new advisory fuel rates for company car users which take effect from 1 June 2024.
The rates have increased by 1p per mile for most petrol and diesel cars. Petrol cars with an engine size over 2000c have seen a larger increase of 2p per mile. The LPG rates remain unchanged. In contrast, the fuel rate for fully electric cars is cut from 9p per mile to 8p per mile to reflect falling energy costs.
HMRC reviews the advisory fuel rates quarterly on 1 March, 1 June, 1 September, and 1 December. The rates are based on the fuel type and engine size of the company car.
The fuel rates for journeys undertaken on or after 1 June 2024 are as follows:
| PETROL | |
| Engine size | Petrol – amount per mile (previous) |
| 1400cc or less | 14p (13p) |
| 1401cc – 2000cc | 16p (15p) |
| Over 2000cc | 26p (24p) |
| LPG | |
| Engine size | LPG – amount per mile (previous) |
| 1400cc or less | 11p (11p) |
| 1401cc – 2000cc | 13p (13p) |
| Over 2000cc | 21p (21p) |
| DIESEL | |
| Engine size | Diesel – amount per mile (previous) |
| 1600cc or less | 13p (12p) |
| 1601cc – 2000cc | 15p (14p) |
| Over 2000cc | 20p (19p) |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The advisory fuel rate for fully electric cars from 1 June is 8 pence per mile, cut from 9 pence per mile from the previous quarter. Electricity is not a fuel for car fuel benefit purposes.
The rates apply when you either:
- reimburse employees for business travel in their company cars, or
- require employees to repay the cost of fuel used for private travel.
The previous rates, which were effective from 1 March 2024, can be used for up to one month from the date the new rates apply, so until 1 July 2024.
If you would like to discuss your car policy, please contact us.
Free initial meeting
Craig Walker
Tax Director, Sheffield