The latest Advisory Fuel Rates (AFRs) were recently published by the HMRC, and take effect from the 1st March 2024.
What are Advisory Fuel Rates?
The HMRC Advisory Fuel Rates are the recommended reimbursement rates, for employees reclaiming business travel, usually in company vehicles. They are also known as “HMRC company car mileage rates”. These Advisory Fuel Rates are also used to calculate the fuel portion of a mileage claim. This is important when claiming VAT on mileage expenses. And this is explained in more detail below.
The Advisory Fuel Rate is based on the engine size and fuel type of your car. To illustrate, the highest rate is for cars with large petrol engines (currently 24 pence per mile), and the lowest rate is for cars with small LPG engines (currently 11 pence per mile).
HMRC update the Advisory Fuel Rates quarterly to take account of changes in fuel prices. The latest Advisory Fuel Rates for 2024 are shown below and are valid from the 1st March 2024.
Advisory Fuel Rates – from 1st March 2024
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 13 pence | 11 pence |
| 1401cc to 2000cc | 15 pence | 13 pence |
| Over 2000cc | 24 pence | 21 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
12 pence |
| 1601cc to 2000cc |
14 pence |
| Over 2000cc |
19 pence |
Hybrid Cars
- Drivers of petrol/electric hybrid cars can use the petrol rates
- Drivers of diesel/electric hybrid cars can use the diesel rates
Advisory Electric Rate
The Advisory Electric Rate (AER) for pure electric company cars is 9ppm. This is free of tax and National Insurance.
Advisory Fuel Rates used to calculate VAT on mileage expenses when driving your own car
The HMRC Advisory Fuel Rate can also used to calculate the fuel portion of your mileage claim. Therefore, this is important if you drive your own car for business and your business (or employer) claims VAT on your mileage expenses.
The formula for calculating the VAT on mileage expenses using the Advisory Fuel Rate is:
Fuel portion = advisory fuel rate x business miles claimed
VAT = fuel portion / 6
Hence:
VAT on mileage = (advisory fuel rate x business miles claimed) / 6
If you want to find out more about claiming VAT on your mileage expenses please see our blog VAT on mileage expenses – how to claim.
Finally the changes to the previous rates are :
- Petrol engine 1400cc or less, decreased by 1p per mile to 13p
- Petrol engine 1401cc to 2000cc, decreased by 1p per mile to 15p
- Petrol engine over 2000cc, decreased by 2p per mile to 24ppm
- Diesel engine 1600cc or less, decreased by 1p per mile to 12ppm
- Diesel engine 1601cc to 2000cc, decreased by 1p per mile to 14ppm
- Diesel engine over 2000cc, decreased by 1p per mile to 19ppm
- LPG engine 1400cc or less, increased by 1p per mile to 11ppm
- LPG engine 1401cc to 2000cc, increased by 1p per mile to 13ppm
- LPG engine over 2000cc, increased by 3p per mile to 21ppm
Previous Advisory Fuel Rates
Rates from 1st December 2023 to 29 February 2024
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 14 pence | 10 pence |
| 1401cc to 2000cc | 16 pence | 12 pence |
| Over 2000cc | 26 pence | 18 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
13 pence |
| 1601cc to 2000cc |
15 pence |
| Over 2000cc |
20 pence |
Rates from 1st September 2023 to 30 November 2023
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 13 pence | 10 pence |
| 1401cc to 2000cc | 16 pence | 12 pence |
| Over 2000cc | 25 pence | 19 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
12 pence |
| 1601cc to 2000cc |
14 pence |
| Over 2000cc |
19 pence |
Rates from 1st June 2023 to 30 August 2023
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 13 pence | 10 pence |
| 1401cc to 2000cc | 15 pence | 12 pence |
| Over 2000cc | 23 pence | 18 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
12 pence |
| 1601cc to 2000cc |
14 pence |
| Over 2000cc |
18 pence |
Rates from 1 March 2022 to 31 May 2023
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 13 pence | 10 pence |
| 1401cc to 2000cc | 15 pence | 11 pence |
| Over 2000cc | 23 pence | 17 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
13 pence |
| 1601cc to 2000cc |
15 pence |
| Over 2000cc |
20 pence |
Rates from 1 December 2022 to 28 February 2023
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 14 pence | 10 pence |
| 1401cc to 2000cc | 17 pence | 12 pence |
| Over 2000cc | 26 pence | 18 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
14 pence |
| 1601cc to 2000cc |
17 pence |
| Over 2000cc |
22 pence |
Rates from 1 September 2022 to 30 November 2022
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 15 pence | 9 pence |
| 1401cc to 2000cc | 18 pence | 11 pence |
| Over 2000cc | 27 pence | 17 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
14 pence |
| 1601cc to 2000cc |
17 pence |
| Over 2000cc |
22 pence |
Rates from 1 June 2022 to 31 August 2022
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 14 pence | 9 pence |
| 1401cc to 2000cc | 17 pence | 11 pence |
| Over 2000cc | 25 pence | 16 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
13 pence |
| 1601cc to 2000cc |
16 pence |
| Over 2000cc |
19 pence |
Rates from 1 March 2022 to 31 May 2022
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 13 pence | 8 pence |
| 1401cc to 2000cc | 15 pence | 10 pence |
| Over 2000cc | 22 pence | 15 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
11 pence |
| 1601cc to 2000cc |
13 pence |
| Over 2000cc |
16 pence |
Rates from 1 December 2021 to 28 February 2022
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 13 pence | 9 pence |
| 1401cc to 2000cc | 15 pence | 10 pence |
| Over 2000cc | 22 pence | 15 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
11 pence |
| 1601cc to 2000cc |
13 pence |
| Over 2000cc |
16 pence |
Rates from 1 September 2021 to 30 November 2021
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 12 pence | 7 pence |
| 1401cc to 2000cc | 14 pence | 8 pence |
| Over 2000cc | 20 pence | 12 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
10 pence |
| 1601cc to 2000cc |
12 pence |
| Over 2000cc |
15 pence |
Rates from 1 June 2021 to 31 August 2021
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 11 pence | 8 pence |
| 1401cc to 2000cc | 13 pence | 9 pence |
| Over 2000cc | 19 pence | 14 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
9 pence |
| 1601cc to 2000cc |
11 pence |
| Over 2000cc |
13 pence |
Rates from 1 March 2021 to 31 May 2021
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 10 pence | 7 pence |
| 1401cc to 2000cc | 12 pence | 8 pence |
| Over 2000cc | 18 pence | 12 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
9 pence |
| 1601cc to 2000cc |
11 pence |
| Over 2000cc |
12 pence |
Rates from 1 December 2020 to 28 February 2021
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 10 pence | 7 pence |
| 1401cc to 2000cc | 11 pence | 8 pence |
| Over 2000cc | 17 pence | 12 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
8 pence |
| 1601cc to 2000cc |
10 pence |
| Over 2000cc |
12 pence |
Rates from 1 September 2020 to 30 November 2020
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 10 pence | 7 pence |
| 1401cc to 2000cc | 12 pence | 8 pence |
| Over 2000cc | 17 pence | 12 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
8 pence |
| 1601cc to 2000cc |
10 pence |
| Over 2000cc |
12 pence |
Rates from 1 June 2020 to 31 August 2020
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 10 pence | 6 pence |
| 1401cc to 2000cc | 12 pence | 8 pence |
| Over 2000cc | 17 pence | 11 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
8 pence |
| 1601cc to 2000cc |
9 pence |
| Over 2000cc |
12 pence |
Rates from 1 March 2020 to 31 May 2020
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 12 pence | 8 pence |
| 1401cc to 2000cc | 14 pence | 10 pence |
| Over 2000cc | 20 pence | 14 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
9 pence |
| 1601cc to 2000cc |
11 pence |
| Over 2000cc |
13 pence |
Rates from 1 December 2019 to 29 February 2020
| Engine Size |
Petrol – pence per mile |
LPG – pence per mile |
| 1400cc or less | 12 pence | 8 pence |
| 1401cc to 2000cc | 14 pence | 9 pence |
| Over 2000cc | 21 pence | 14 pence |
| Engine Size |
Diesel – pence per mile |
| 1600cc or less |
9 pence |
| 1601cc to 2000cc |
11 pence |
| Over 2000cc |
14 pence |
N.B. The Advisory Fuel Rates for earlier periods can be found at www.gov.uk
Tripcatcher users – these rates are updated for you so there is nothing for you to do!!!