HMRC Advisory Fuel Rates for Company Car users from 1 December 2024

The advisory fuel rates that apply from 1 December 2024 have been cut for petrol and diesel engines by between 1p per mile, while the electric mileage rate remains unchanged 

The previous rates, effective from September 2024, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

• reimburse employees for business travel in their company cars; or
• require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

From 1 December 2024 the advisory electricity rate for fully electric cars will be 7p. In line with advisory fuel rates, this electric rate is now being reviewed quarterly and has been included in the tables below.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.

Advisory fuel rates from 1 December 2024

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

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