HMRC cuts advisory fuel rates as well as electric advisory rates
HMRC has published new advisory fuel rates (AFRs), bringing reductions across the board for petrol- and diesel-engined cars and lowering the rate for fully electric cars from 1 September 2024.
AERs have been reduced to 7 pence per mile from 1 September
The AFRs, used to reimburse employees for business travel in their company cars, are effective from 1 September 2024 and based on latest petrol and diesel prices taken from the Department for Energy Security and Net Zero (DESNZ).
All petrol and diesel rates fall by 1ppm, with the exception of the rate for larger-engined petrol cars (over 2000cc), which drops by 2p to 24ppm. However, LPG rates, which are based on figures from the AA, stay the same.
The drop in AFRs comes on the back of a downward trend in petrol and diesel prices.
The new AFR tables are as follows (old rates in brackets):
| Engine size | Petrol – amount per mile | LPG – amount per mile |
|---|---|---|
| 1400cc or less | 13 pence (14p) | 11 pence (11p) |
| 1401cc to 2000cc | 15 pence (16p) | 13 pence (13p) |
| Over 2000cc | 24 pence (26p) | 21 pence (21p) |
| Engine size | Diesel – amount per mile |
|---|---|
| 1600cc or less | 12 pence (13p) |
| 1601cc to 2000cc | 14 pence (15p) |
| Over 2000cc | 18 pence (20p) |
Electric
From 1 September 2024, the advisory electric rate (AER) for fully electric cars will be 7 pence per mile (previously 8 pence per mile).
Hybrid cars are treated as either petrol or diesel cars for AFR purposes.
The previous rates can be used for up to one month from the date the new rates apply.
The full list of rates can be viewed here, along with the tables for calculating them.
Natalie Middleton
Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.
