Advisory fuel rates for company cars

Brian Floringer
Tax, News
Company car advisory fuel rates

New company car advisory fuel rates have been published and took effect from 1 June 2024.

Company car advisory fuel rates

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2024 are:

Engine sizePetrol
1400cc or less14p
1401cc - 2000cc16p
Over 2000cc26p
Engine sizeDiesel
1600cc or less13p
1601cc - 2000cc15p
Over 2000cc20p
Engine sizeLPG
1400cc or less11p
1401cc - 2000cc13p
Over 2000cc21p

HMRC guidance states that the rates only apply when you either:

  • reimburse employees for business travel in their company cars
  • require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

  The Advisory Electricity Rate for fully electric cars is 8p per mile.   

If you would like to discuss your car policy

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