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 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).
Related Topics
-
MONTHLY FOCUS: SECONDARY INCOMES
In 2023 it was revealed that HMRC would enjoy new data-sharing information from online selling platforms from 1 January 2024, including eBay, Etsy, etc. This led to media speculation that innocent people selling second-hand items would soon be hearing from a tax inspector. In this monthly focus, we look at the tax consequences of starting a small trade, or taking a second job.
-
New online service for voluntary contributions goes live
If you have gaps in your NI history, you can pay voluntary contributions to increase your entitlement to certain benefits, e.g. the state pension. You can now do this online. How do you access the new service?
-
Investing in woodlands - what are your options?
Investing in woodlands comes with several tax breaks. To make the most of these should you invest personally or through a company?