The Updated Advisory Fuel Rates from 01 September 2024.
On 23 August May 2024, HMRC advised the value of the following rates that apply from 01 June 2024:
1. The Advisory Electricity Rate, and
2. The Advisory Fuel Rates
Both are payable to either reimburse employees for business travel in a company car or to calculate the amount an employee should repay where are required to repay the cost of fuel used for private travel (in a company car).
Whilst these rates are effective 01 September 2024, employers can use the previous rates for up to one month, therefore, they must be in place by 01 October 2024.
Note these rates are advisory which means employers can pay at a higher rate if they can justify the costs per mile are higher. If they cannot, the excess is profit and subject to tax and Class 1 NICs.
The Advisory Electricity Rate (AER)
The rate from 01 September 2024 is show below compared to the rate applying from 01 June 2024 showing a change from 8p to 7p per mile:
|
Advisory Electricity Rate
|
Date
|
Rate
|
|
Fully electric company cars
|
From 01/06/24
|
8p
|
|
From 01/09/24
|
7p
|
This rate is reviewed every three months.
The Advisory Fuel Rates (AFRs)
The rates from 01 September 2024 are show below compared to the rates applying from 01 June 2024, with changes highlighted by *:
|
Fuel
|
Date
|
Engine Size
|
|
1400cc or less
|
1401 to 2000cc
|
Over 2000cc
|
|
Petrol / petrol-hybrid
|
From 01/06/24
|
14p
|
16p
|
26p
|
|
From 01/09/24
|
13p *
|
15p *
|
24p *
|
|
LPG
|
From 01/06/24
|
11p
|
13p
|
21p
|
|
From 01/09/24
|
11p
|
13p
|
21p
|
|
|
Date
|
Engine Size
|
|
1600cc or less
|
1601 to 2000cc
|
Over 2000cc
|
|
Diesel
|
From 01/06/24
|
13p
|
15p
|
20p
|
|
From 01/09/24
|
12p *
|
14p *
|
18p *
|
These rates are also reviewed every three months.
