HMRC have published new advisory fuel rates for company car drivers which will apply from 1 March 2024.
This is a freeview 'At a glance' guide to advisory fuel rates for company car drivers.
At a glance
The rates from 1 March 2024 are:
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
13p |
11p |
9p |
|
1,600cc or less |
12p |
9p |
||
1,401cc - 2,000cc |
15p |
13p |
9p |
|
1,601cc to 2,000cc |
14p |
9p |
||
Over 2,000cc. |
24p |
19p |
21p |
9p |
You can continue to use the old rates up to 31 March 2024, see below.
*Fully electric cars only
Advisory fuel rates are set by HMRC
- Employers can use these rates to reimburse Company car drivers for business fuel.
- These rates can also be used if employees are required to repay the cost of fuel used for private travel.
- These rates should not be used in relation to Vans.
- The electric rate is reviewed quarterly from 1 March 2023.
- Hybrid cars can be treated as either petrol or diesel cars for this purpose.
- These amounts also apply for VAT purposes, but employers can only reclaim input VAT if the employee supplies a receipt.
On 1 December 2017, as part of the Taxation of employee expenses: Response to the call for evidence, the government announced it had considered the position and had no plans to change the current system; in particular it would not introduce specific rates for hybrid and electric cars. However, in August 2018 HMRC announced that from 1 September 2018:
- They would accept that if employers pay up to the advisory rate, which was at that time four pence per mile, when reimbursing employees for business travel in a fully electric company car there is no profit for Income Tax or earnings for National Insurance (NI) purposes.
- Employers can use their own rate if it better reflects circumstances, for example, if their cars are more efficient, or if the cost of business travel is higher than the guideline rate.
- If employers pay a rate that is higher than the advisory rate and cannot demonstrate the electricity cost per mile is higher, they must treat any excess as taxable income and as earnings for Class 1 National Insurance purposes.
Rates from 1 December 2023
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
14p |
10p |
9p |
|
1,600cc or less |
13p |
9p |
||
1,401cc - 2,000cc |
16p |
12p |
9p |
|
1,601cc to 2,000cc |
15p |
9p |
||
Over 2,000cc. |
26p |
20p |
18p |
9p |
*Fully electric cars only
Rates from 1 September 2023
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
13p |
10p |
10p |
|
1,600cc or less |
12p |
10p |
||
1,401cc - 2,000cc |
16p |
12p |
10p |
|
1,601cc to 2,000cc |
14p |
10p |
||
Over 2,000cc. |
25p |
19p |
19p |
10p |
*Fully electric cars only
Rates from 1 June 2023
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
13p |
10p |
9p |
|
1,600cc or less |
12p |
9p |
||
1,401cc - 2,000cc |
15p |
12p |
9p |
|
1,601cc to 2,000cc |
14p |
9p |
||
Over 2,000cc. |
23p |
18p |
18p |
9p |
*Fully electric cars only
Rates from 1 March 2023
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
13p |
10p |
9p |
|
1,600cc or less |
13p |
9p |
||
1,401cc - 2,000cc |
15p |
11p |
9p |
|
1,601cc to 2,000cc |
15p |
9p |
||
Over 2,000cc. |
23p |
20p |
17p |
9p |
*Fully electric cars only
Rates from 1 December 2022
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
14p |
10p |
8p |
|
1,600cc or less |
14p |
8p |
||
1,401cc - 2,000cc |
17p |
12p |
8p |
|
1,601cc to 2,000cc |
17p |
8p |
||
Over 2,000cc. |
26p |
22p |
18p |
8p |
*Fully electric cars only
Rates from 1 September 2022
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
15p |
9p |
5p |
|
1,600cc or less |
14p |
5p |
||
1,401cc - 2,000cc |
18p |
11p |
5p |
|
1,601cc to 2,000cc |
17p |
5p |
||
Over 2,000cc. |
27p |
22p |
17p |
5p |
*Fully electric cars only
Rates from 1 June 2022
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
14p |
9p |
5p |
|
1,600cc or less |
13p |
5p |
||
1,401cc - 2,000cc |
17p |
11p |
5p |
|
1,601cc to 2,000cc |
16p |
5p |
||
Over 2,000cc. |
25p |
19p |
16p |
5p |
*Fully electric cars only
Rates from 1 March 2022
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
13p |
8p |
5p |
|
1,600cc or less |
11p |
5p |
||
1,401cc - 2,000cc |
15p |
10p |
5p |
|
1,601cc to 2,000cc |
13p |
5p |
||
Over 2,000cc. |
22p |
16p |
15p |
5p |
*Fully electric cars only
Rates from 1 December 2021
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
13p |
9p |
5p |
|
1,600cc or less |
11p |
5p |
||
1,401cc - 2,000cc |
15p |
10p |
5p |
|
1,601cc to 2,000cc |
13p |
5p |
||
Over 2,000cc. |
22p |
16p |
15p |
5p |
*Fully electric cars only
Rates from 1 September 2021
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
1,400cc or less |
12p |
7p |
4p |
|
1,600cc or less |
10p |
4p |
||
1,401cc - 2,000cc |
14p |
8p |
4p |
|
1,601cc to 2,000cc |
12p |
4p |
||
Over 2,000cc. |
20p |
15p |
12p |
4p |
*Fully electric cars only
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