top of page
  • Writer's pictureAamer Amin

Advisory fuel rates for company cars changed from 1 June 2024

The amount that employers can reimburse staff for business travel in company cars changes from 1 June 2024. What are the new rates?


Advisory fuel rates for company cars are updated on a quarterly basis due to fluctuations in fuel prices. The rates determine the amount that can be paid to an employee using a company car for business mileage, without income tax consequences.


HMRC has now published the advisory rates applicable from 1 June 2024. The rates for diesel and petrol engines have increased, whilst LPG rates have remained static. The new rates are as follows:


From 1 June 2024

Engine size

Petrol — rate per mile

LPG — rate per mile

1400cc or less

14 pence

11 pence

1401cc to 2000cc

16 pence

13 pence

Over 2000cc

26 pence

21 pence

 

Engine size

Diesel — rate per mile

1600cc or less

13 pence

1601cc to 2000cc

15 pence

Over 2000cc

20 pence

 

Electric — rate per mile

8 pence

 

Hybrid cars are treated as either petrol or diesel cars for the purposes of Advisory fuel rates. These rates apply from 1 June 2024, but you can still use the previous rates for one month from that date.

 

Employees with fully electric vehicles and high mileage for June would be slightly better off if you use the rates for the current quarter (9p per mile), with diesel and petrol users better off using the new Advisory fuel rates.

6 views0 comments

Opmerkingen


bottom of page