HMRC Advisory Fuel Rates from 1 September 2024
Below are the updated HMRC advisory fuel rates effective from 1 September 2024. These rates are the suggested reimbursement figures for employees using company cars for private mileage. Where a rate has changed, the previous rate is shown in brackets.
| Engine Size | Petrol | Diesel | LPG |
|---|---|---|---|
| 1400cc or less | 13p (14p) | 11p | 11p (11p) |
| 1600cc or less | – | 12p (13p) | – |
| 1401cc to 2000cc | 15p (16p) | 13p (13p) | 14p (15p) |
| Over 2000cc | 24p (26p) | 18p (20p) | 21p (21p) |
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.
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.
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.
If you have any questions or need further clarification on how to manage these reimbursements or reclaim VAT, feel free to reach out to A&C Chartered Accountants for personalised advice.
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