HMRC has published new advisory fuel rates for company car users which take effect from 1 December 2024.
The rates have decreased by 1p per mile for petrol and diesel engine cars. Whilst rates for LPG and electric mileage remains unchanged.
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 December 2024 are as follows:
| PETROL | |
| Engine size | Petrol – amount per mile (previous) |
| 1400cc or less | 12p (13p) |
| 1401cc – 2000cc | 14p (15p) |
| Over 2000cc | 23p (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 | 11p (12p) |
| 1601cc – 2000cc | 13p (14p) |
| Over 2000cc | 17p (18p) |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The advisory fuel rate for fully electric cars from 1 December is 7 pence per mile, which is unchanged 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 September 2024, can be used for up to one month from the date the new rates apply, so until 1 January 2025.
If you would like to discuss your car policy, please contact us.
Free initial meeting
Stephen Charles
Tax Partner, Sheffield