UK: HMRC company car advisory fuel rates

The HMRC company car advisory fuel rates that apply from 1 September 2024 have been cut for petrol and diesel vehicles by between 1p and 2p per mile, and the electric mileage rate by 1p.

The HMRC rates only apply to:

• Reimburse employees for business travel in their company cars; or

• Require employees to repay the cost of fuel used for private travel.

Electric cars- The advisory electricity rate for fully electric cars has been reduced to 7p per mile. Electricity is not a fuel for car fuel benefit purposes.

In line with advisory fuel rates, this electric rate is now being reviewed quarterly.

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

When employees are reimbursed up to the advisory fuel rates for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national insurance arising.

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Advisory fuel rates from 1 September 2024