Last update: This post was updated with the latest fuel rates as of 1st December 2024.
The table below shows the latest HMRC advisory fuel rates. These are the suggested reimbursement rates for employees’ private mileage using their company car.
Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee:
| Engine Size | Petrol | Diesel | LPG |
| 1,400cc or less | 12p (13p) | | 11p |
| 1,600cc or less | | 11p (12p) | |
| 1,401cc to 2,000cc | 14p (15p) | | 13p |
| 1,601cc to 2,000cc | | 13p (14p) | |
| Over 2,000cc | 23p (24p) | 17p (18p) | 21p |
Where there has been a change the previous rate is shown in brackets. If there has been a change in rates, you can continue to use the previous rates for up to one month from the effective date of the new rates.
For fully electric vehicles, the reimbursement rate is 7p per mile (previously 9p per mile). For hybrid cars, you should use the relevant petrol or diesel rate.
Tax-Free Reimbursement for Business Journeys
These fuel rates can be reimbursed by employers without any tax implications for the employee when no fuel is provided for the company car.
Reclaiming Input VAT on Fuel
Within the 45p/25p mileage payments, the amounts in the table above represent the fuel element. Employers can reclaim 20/120 of the reimbursed amount as input VAT, provided the claim is backed by a VAT invoice from the filling station.
For example, for a 2000cc diesel-engine car, 3 pence per mile can be reclaimed as input VAT (18p x 1/6).
Employees Using Their Own Cars for Business
For employees using their own vehicles for business purposes, the Advisory Mileage Allowance Payment (AMAP) continues to be 45p per mile for the first 10,000 business miles, reducing to 25p per mile thereafter. An additional 5p per passenger can be claimed when carrying fellow employees.
Importantly, for National Insurance contribution purposes, employers can continue to reimburse at the 45p rate regardless of the 10,000-mile threshold.
Got A Question About The Advisory Fuel Rates For Company Cars?
If you have any questions or need further clarification on how to manage these reimbursements or reclaim VAT, feel free to reach out to our team for personalised advice.
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