For VAT reclaims and mileage claims

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 June 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 June 2024

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

Engine sizePetrol - amount per mileLPG - amount per mileDiesel - amount per mile
1400cc or less1310
1401cc - 2000cc1612
1600cc or less12
1600cc - 2000cc14
Over 2000cc251919

The Advisory Electricity Rate for fully electric cars is 8 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.

Share article
Share article

Latest news and articles

  • 07 June 2023

What is an associated company?

An associated company has a significant level of control or influence over another company, or both companies are ...

  • 25 March 2022

Spring Budget Summary 2024

It's not a particularly interesting budget with a few predicted giveaways since it’s an election year, but a few s...

  • 11 October 2020

The latest IR35 case law

If you are ever investigated by HMRC and employment status is found between your company and your end customer, th...