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

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

From 1 September 2024, the advisory electric rate for fully electric cars will be 7 pence per mile.

The table below sets out the HMRC advisory fuel rates from 1 September 2024. 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 September 2024

Hybrid cars are treated as either petrol or diesel cars for this purpose. For fully electric vehicles the rate is 7p per mile.

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

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