Fuel advisory rates are used to calculate the amount of VAT a company can reclaim relating to the fuel element of the mileage allowance payments. These rates are also used for mileage claims when an individual has a company car but pays for fuel privately.
These advisory fuel rates apply to all journeys on or after 1st December 2024 until further notice. For one month from the change date, employers may use the previous or new current rates as they choose. Employers may, therefore, make or require supplementary payments if they wish but are not obligated to do either.
Advisory Fuel Rates from 1st December 2024
Hybrid cars are treated as either petrol or diesel cars for this purpose.
| Engine size | Petrol – amount per mile | LPG – amount per mile | Diesel – amount per mile |
|---|---|---|---|
| 1400cc or less | 12 | 11 | |
| 1401cc – 2000cc | 14 | 13 | |
| 1600cc or less | 11 | ||
| 1600cc – 2000cc | 13 | ||
| Over 2000cc | 23 | 21 | 17 |
The Advisory Electricity Rate for fully electric cars is 7 pence per mile.
Electricity is not a fuel for car fuel benefit purposes.
Please note: mileage allowance payments for the use of private cars for business purposes should be made at rates of 45p per mile for the first 10,000 miles per tax year and 25p thereafter.
