HMRC advisory fuel rates for company car users from 1 June 2024

HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 June 2024.

From 1 June 2024, the advisory electric rate for fully electric cars will be 8 pence per mile.

The table below sets out the HMRC advisory fuel rates. These are the suggested reimbursement rates for employees' private mileage using their company car.

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.

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.

From 1 June 2024

Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.

You can use the previous rates for up to 1 month from the date any new rates apply.

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