05 March 2024
Advisory fuel rates from 1st March 2024
Services:
Accounting,
Auditing,
Personal Tax Planning,
Corporate Tax Planning,
International Tax Planning,
Tax Reliefs including R&D,
VAT & Customs Duty,
Tax Investigations,
Acquisitions and Disposals,
Funding and Asset Finance,
Expansion & Improvement,
Outsourced Payroll,
Online Accounting
Advisory fuel rates from 1st March 2024 for employees using a company car are below.
These rates are to be used when you either:
- reimburse employees for business travel in their company cars
- need employees to repay the cost of fuel used for private travel
It’s worth noting that both the rates for diesel and petrol cars have been cut due to lower pump prices that HMRC use to determine the rates.
LPG rates have risen and electric cars have remained the same.
|
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
|
1,400cc or less |
13p |
|
11p |
9p |
|
1,600cc or less |
|
12p |
|
9p |
|
1,401cc - 2,000cc |
15p |
|
13p |
9p |
|
1,601cc to 2,000cc |
|
14p |
|
9p |
|
Over 2,000cc. |
24p |
19p |
21p |
9p |
Notes to consider
*Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable benefit and no Class 1A National Insurance to pay.
If your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation.
If you pay rates that are higher than the advisory rates but cannot show that the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.
For more help and advice, contact us at our offices in Contact our team today in Chester, Liverpool or Wirral.
Author
Joe Walters
Associate Director
