The Latest advisory fuel rates for company car user

The amount that employees can be reimbursed for business travel in company cars changed from 1 September 2024. What are the new rates?

Advisory fuel rates for company cars are updated by HMRC 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, free from income tax.

HMRC has published the advisory rates applicable from 1 September 2024. The rates for diesel and petrol engines have decreased, whilst LPG rates have remained static.

The rates per mile are:

Engine size	Petrol - rate per mile	LPG - rate per mile
1,400cc or less	13p	11p
1,401cc to 2,000cc	15p	13p
Over 2,000cc	24p	21p

Engine size	Diesel - rate per mile
1,600cc or less	12p
1,601cc to 2,000cc	14p
Over 2,000cc	18p

The rate for fully electric vehicles is also reduced to 7p per mile. Hybrid cars are treated as either petrol or diesel cars for the purposes of advisory fuel rates.

These rates apply from 1 September 2024, but you can still use the previous rates for one month from that date. If you have business mileage for September, you will be slightly better off by using the rates for the current quarter.