Advisory fuel rates from 1 March 2024 published

The approved amount that employers can reimburse staff for business travel in company cars changes from 1 March 2024. What are the new rates?

Advisory fuel rates from 1 March 2024 published

Advisory fuel rates for company cars are updated 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, without income tax consequences. HMRC has now published the advisory rates applicable from 1 March 2024. The rates for diesel and petrol engines have decreased, whilst LPG rates have increased.

The rates per mile will be:

Engine size

Petrol

LPG

1,400cc or less

13p

11p

1,401cc to 2,000cc

15p

13p

Over 2,000cc

24p

21p

 

 

 

 

 

Engine size

Diesel

1,600cc or less

12p

1,601cc to 2,000cc

14p

Over 2,000cc

19p

 

 

 

 

 

The rate for fully electric vehicles remains unchanged from the previous quarter at 9p per mile. Hybrid cars are treated as either petrol or diesel cars for the purposes of advisory fuel rates.

These rates apply from 1 March 2024, but you can still use the previous rates for one month from that date. Those with diesel or petrol engines and high mileage for February would be slightly better off by using the rates for the current quarter (13p, 15p and 20p per mile for diesel and 14p, 16p and 26p per mile for petrol).

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