Advisory Fuel Rates from 1st March 2024

Posted on 28th February 2024 by Joanne Stoneman

The approved amount that employers can reimburse staff for business travel in company cars changes from 1st March 2024. What are the new rates? 

Advisory fuel rates for company cars are updated on a quarterly basis due to fluctuations in fuel prices. The rates determine the amount that can be paid to an employee using a company car for business mileage, without income tax consequences. HMRC has now published the advisory rates applicable from 1 March 2024. The rates for diesel and petrol engines have decreased, whilst LPG rates have increased.

The rates per mile will be:

Petrol / LPG:

1,400cc or less

Petrol per mile: 13p
LPG per mile: 11p

1,401cc to 2,000cc
Petrol per mile: 15p
LPG per mile: 13p

Over 2,000cc
Petrol per mile: 24p
LPG per mile: 21p

Diesel:

1,600cc or less

Diesel per mile: 12p

1,601cc to 2,000cc
Diesel per mile: 14p

Over 2,000cc
Diesel per mile: 19p