HMRC Advisory Fuel rates AFR from 1 March 2024

When are Advisory Fuel rates (AFR) applied?

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.

AFR from 1st March 2024

The advisory fuel rates that apply from 1 March 2024 have been cut by between 1p and 2p for petrol and diesel engines. There was a 1p increase in LPG engine rates for lower cc vehicles while rates were up by three pence per mile for 2000cc plus vehicles.

The previous rates, effective from December 2023, can be used for up to one month from the date the new rates apply.

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.

Advisory Fuel rates (AFR) for electricity cars

From 1 March 2024 the advisory electricity rate for fully electric cars remain unchanged at 9p per mile. In line with advisory fuel rates, this electric rate is now being reviewed quarterly.

Advisory fuel rates from 1 March 2024

Engine size	Petrol – amount per mile (Previous)	LPG – amount per mile (Previous)
1400cc or less	13p (14pm)	11p (10p)
1401cc to 2000cc	15p (16p)	13p (12p)
Over 2000cc	24p (26p)	21p (18p)

Engine size	Diesel – amount per mile (Previous)
Up to 1600cc	12p (13p)
1601cc to 2000cc	14p (15p)
Over 2000cc	19p (20p)

Hybrid cars are treated as either petrol or diesel cars for this purpose.

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

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