The new company car advisory fuel rates (AFRs) have been published and will be effective from 1st December 2024. The Rates are as follows and are Pence Per mile (ppm). Changes from last quarter shown in [ ]
| Petrol cars | CC | NEW Fuel rate | Old Fuel rate |
| Petrol cars with an engine size upto | 1400cc | 12 ppm | [Down 1ppm from 13ppm last time] |
| Petrol cars with an engine size of | 1401cc to 2000cc | 14 ppm | [Down 1ppm from 15ppm last time] |
| Petrol cars with an engine size over | 2000cc | 23 ppm | [Down 1ppm from 24ppm last time] |
| LPG cars | CC | NEW Fuel rate | Old Fuel rate |
| LPG cars with an engine size upto | 1400cc | 11 ppm | [Remains the same] |
| LPG cars with an engine size of | 1401cc to 2000cc | 13 ppm | [Remains the same] |
| LPG cars with an engine size over | 2000cc | 21 ppm | [Remains the same] |
| Diesel Cars | CC | NEW Fuel rate | Old Fuel rate |
| Diesel cars with an engine size upto | 1600cc | 11 ppm | [Down 1ppm from 12ppm last time] |
| Diesel cars with an engine size | 1601cc to 2000cc | 13 ppm | [Down 1ppm from 14ppm last time] |
| Diesel cars with an engine size over | 2000cc | 17 ppm | [Down 1ppm from 18ppm last time] |
| Hybrid cars | |||
| Hybrid cars are treated as either petrol or diesel cars for AFR purposes. | |||
| Fully Electric cars | NEW Fuel rate | Old Fuel rate | |
| All electric cars | 7ppm | [Remains the same] | |
What are Advisory Fuel Rates
AFRs are set for different types of vehicles based on their engine size and fuel type, and they are updated every quarter.
These rates are designed to reflect the cost of fuel per mile for different vehicles and to ensure that employees are compensated for business travel expenses.
It's important to note that AFRs are only advisory, and employers and employees can choose to use actual costs instead, provided they can demonstrate they are reasonable.
HMRC review rates quarterly on:
1st March
1st June
1st September
1st December
When you can use the mileage rates
These rates only apply to employees using a company car.
Use the rates when you either:
Reimburse employees for business travel in their company cars.
Need employees to repay the cost of fuel used for private travel.
You must not use these rates in any other circumstances.
For full details on AFR's head over to the Gov.uk website