Gerry MacCrossan
The table below sets out the HMRC advisory fuel rates from 1 June 2024. These are the suggested reimbursement rates for employees’ private mileage using their company car.
When the employer does not cover fuel costs for the company car, the following amounts can be reimbursed for business journeys without being taxable to the employee. Where there has been a change, the previous rate is shown in brackets.
You can continue to use the previous rates for up to 1 month from the date the new rates apply.
Please note that for hybrid cars, you must use the petrol or diesel rate, but for fully electric vehicles, the rate is 8p (previously 9p) per mile.
Employees using their own cars:
For employees using their own cars for business purposes, the Advisory Mileage Allowance Payment (AMAP) tax-free reimbursement rate remains at 45 pence per mile (plus 5p per passenger) for the first 10,000 business miles, reduced to 25 pence a mile thereafter. For National Insurance purposes, employers can continue to reimburse at the 45p rate as the 10,000 threshold does not apply.
Input VAT:
Within the 45p/25p payments, the amounts in the above table represent the fuel element. Employers can reclaim 20/120 of the amount as input VAT, provided the claim is supported by a VAT invoice from the filling station. For a 2500cc petrol-engine car, 4 pence per mile can be reclaimed as input VAT (24p x 1/6).