What you need to know

These rates apply to all journeys on or after 1 March 2024. For one month from the date of change, employers may use either the previous or new current rates. Employers may make or require supplementary payments (but are under no obligation to do either).

The advisory electric rate for fully electric cars is 9 pence per mile. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.

From 1 March 2024 

Engine size Petrol LPG Engine size Diesel
1400cc or less 13p 11p 1600cc or less 12p
1401cc to 2000cc 15p 13p 1601cc to 2000cc 14p
Over 2000cc 24p 21p Over 2000cc 19p

The previous rates from 1 December to 29 February 2023 were:

Engine size Petrol LPG
1400cc or less 14p 10p    
1401cc to 2000cc 16p 12p
Over 2000cc 26p 18p

The above rates only apply where employers:

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

Where an employee uses their own car for business journeys, the Approved Mileage Allowance Payments should be used. These rates have not changed and remain at:

  • 45p a mile for the first 10,000 business miles
  • 25p a mile thereafter.

The latest update to the above rates, although less than two weeks old, is not in line with, or keeping pace with spiralling forecourt prices. Businesses that use the Advisory Fuel Rates (AFRs) should keep in mind that the rates are only ‘advisory’. It is permissible to apply differing rates to the AFRs, to reflect higher fuel prices.

This will apply particularly to petrol and diesel. Businesses that wish to implement a rate that is higher than HMRCs published rates, should ensure that supporting calculations are made and preserved for future reference, and/or inspection by HMRC. It also follows, that forecourt prices should be actively monitored and the rates amended in line with any fluctuations/reductions in fuel price.

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