Latest advisory fuel rates for company car drivers
The amount that employees can be reimbursed for business travel in company cars changes from 1 December 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 now published the advisory rates applicable from 1 December 2024. Note that the rates for diesel and petrol engines have decreased by 1p, whilst LPG and electric rates have remained static.
The rate per mile will be:
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Engine size |
Petrol |
LPG |
|
1,400cc or less |
12p |
11p |
|
1,401cc to 2,000cc |
14p |
13p |
|
Over 2,000cc |
23p |
21p |
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Engine size |
Diesel |
|
1,600cc or less |
11p |
|
1,601cc to 2,000cc |
13p |
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Over 2,000cc |
17p |
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The rate for fully electric vehicles will continue to be 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 December 2024, but you can still use the previous rates for one month from that date. If you have business mileage for December, you will be slightly better off by using the rates for the current quarter.
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