UPDATE: Fuel Rates for Company Car Drivers
The reimbursement rates for employees using company cars for business travel have been updated as of 1 September 2024. These Advisory Fuel Rates (AFRs), set by HMRC, are revised every quarter to reflect changes in fuel prices. The AFRs specify the maximum amounts that can be reimbursed to employees for business mileage in a company car without incurring income tax. The latest update shows a reduction in rates for diesel and petrol vehicles, while LPG rates remain unchanged.
The new rates per mile are as follows:
Petrol/LPG:
- 1,400cc or less: 13p (Petrol), 11p (LPG)
- 1,401cc to 2,000cc: 15p (Petrol), 13p (LPG)
- Over 2,000cc: 24p (Petrol), 21p (LPG)
Diesel:
- 1,600cc or less: 12p
- 1,601cc to 2,000cc: 14p
- Over 2,000cc: 18p
The rate for fully electric vehicles has been reduced to 7p per mile. For hybrid vehicles, the rates are determined by whether they are petrol or diesel-powered. While these new rates take effect from 1 September 2024, you have the option to use the previous quarter’s rates for mileage incurred during September, which may result in a slightly higher reimbursement.
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