New advisory fuel rates from June

HMRC has announced new fuel rates for company cars. They apply to all journeys on or after 1 June 2024, until further notice.

For one month from the date of change, employers may use either the previous or new rates. They may, therefore, make or require supplementary payments, but are under no obligation to do either.

Hybrid cars are treated as either petrol or diesel cars for this purpose.

The amounts can be used for VAT, but employers will need to retain receipts.

The advisory rate for fully electric cars is cut from 9p to 8p a mile. 

Engine size   Petrol LPG

1,400cc or less        14p     11p

1,401cc to 2,000cc  16p     13p

Over 2,000cc            26p     21p

Engine size   Diesel

1,600cc or less        13p

1,601cc to 2,000cc  15p

Over 2,000cc            20p

Issue: 4938 / Categories: News