HMRC’s ‘advisory fuel rates’ that apply from 1 September 2024 have been cut for petrol and diesel engines by between 1p and 2p per mile, as has the electric mileage rate by 1p.
The previous rates, effective from June 2024, can be used for up to one month from the date the new rates apply (so, up to the end of September).
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.
From 1 September 2024 the advisory electricity rate for fully electric cars is cut to 7p per mile from 8p. 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 September 2024
Engine size | Petrol – amount per mile (previous in brackets) | LPG – amount per mile (previous in brackets) |
1400cc or less | 13p (14p) | 11p (11p) |
1401cc to 2000cc | 15p (16p) | 13p (13p) |
Over 2000cc | 24p (26p) | 21p (21p) |
Engine size | Diesel – amount per mile (previous in brackets) |
Up to 1600cc | 12p (13p) |
1601cc to 2000cc | 14p (15p) |
Over 2000cc | 18p (20p) |
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. You can check the rates yourself, each quarter, using this link: https://www.gov.uk/guidance/advisory-fuel-rates
