Cars – Advisory Fuel Rates For Company Cars
- Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
- If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.
The advisory fuel rates for journeys undertaken on or after 1 March 2024 are:
| Engine size | Petrol |
|---|---|
| 1400cc or less | 13p |
| 1401cc – 2000cc | 15p |
| Over 2000cc | 24p |
| Engine size | Diesel |
|---|---|
| 1600cc or less | 12p |
| 1601cc – 2000cc | 14p |
| Over 2000cc | 19p |
| Engine size | LPG |
|---|---|
| 1400cc or less | 11p |
| 1401cc – 2000cc | 13p |
| Over 2000cc | 21p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The Advisory Electricity Rate for fully electric cars is 9p per mile. Electricity is not a fuel for car fuel benefit purposes.
- Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
- If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.
The advisory fuel rates for journeys undertaken on or after 1 March 2023 are:
| Engine size | Petrol |
|---|---|
| 1400cc or less | 13p |
| 1401cc – 2000cc | 15p |
| Over 2000cc | 23p |
| Engine size | Diesel |
|---|---|
| 1600cc or less | 13p |
| 1601cc – 2000cc | 15p |
| Over 2000cc | 20p |
| Engine size | LPG |
|---|---|
| 1400cc or less | 10p |
| 1401cc – 2000cc | 11p |
| Over 2000cc | 17p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The Advisory Electricity Rate for fully electric cars is increased from 8p to 9p per mile. Electricity is not a fuel for car fuel benefit purposes.
- Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
- If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.
The advisory fuel rates for journeys undertaken on or after 1 March 2022 are:
| Engine size | Petrol |
|---|---|
| 1400cc or less | 13p |
| 1401cc – 2000cc | 15p |
| Over 2000cc | 22p |
| Engine size | Diesel |
|---|---|
| 1600cc or less | 11p |
| 1601cc – 2000cc | 13p |
| Over 2000cc | 16p |
| Engine size | LPG |
|---|---|
| 1400cc or less | 8p |
| 1401cc – 2000cc | 10p |
| Over 2000cc | 15p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The Advisory Electricity Rate for fully electric cars is 5 pence per mile. Electricity is not a fuel for car fuel benefit purposes.
- Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
- If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.
The advisory fuel rates for journeys undertaken on or after 1 March 2021 are:
| Engine size | Petrol |
|---|---|
| 1400cc or less | 10p |
| 1401cc – 2000cc | 12p |
| Over 2000cc | 18p |
| Engine size | Diesel |
|---|---|
| 1600cc or less | 9p |
| 1601cc – 2000cc | 11p |
| Over 2000cc | 12p |
| Engine size | LPG |
|---|---|
| 1400cc or less | 7p |
| 1401cc – 2000cc | 8p |
| Over 2000cc | 12p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.
Tax Rates & Allowances
- Introduction
- Capital Allowances – Plant And Machinery
- Capital Gains Tax (CGT)
- Car Benefits
- Car Fuel Benefit
- Cars – Advisory Fuel Rates For Company Cars
- Child Benefit
- Corporation Tax Rates
- Employee’s Statutory Payments
- Income Tax Allowances
- Income Tax Rates – Across the UK
- Income Tax Rates – Scotland
- Income Tax Rates – Wales
- Individual Savings Account (ISA)
- Inheritance Tax (IHT)
- Land and Buildings Transaction Tax
- Land Transaction Tax
- Mileage Allowance Payments (MAPS) For Employees
- Minimum Wage
- National Insurance Contributions (NIC) – Rates And Allowances
- Pensions Automatic Enrolment
- Pensions – Tax Relief On Pension Contributions
- Property Allowance
- Self Assessment – Key Dates
- Stamp Duty
- Stamp Duty Land Tax (SDLT)
- State Pensions
- Tax Reliefs For Individuals
- Trade Allowance
- Van Benefit
- VAT
- Vat Fuel Scale Charges
- Vehicle Excise Duty (VED) – Passenger Cars