MILEAGE RATES
Advisory fuel rates (AFRs) for company cars are updated on a quarterly basis due to fluctuations in fuel prices. The rates determine the amount that can be paid to an employee using a company car for business mileage, without income tax consequences. HMRC has now published the advisory rates applicable from 1 June 2024. The rates for diesel and petrol engines have increased, whilst LPG rates have remained static. The new rates are as follows:
The AFR for fully electric vehicles will reduce to 8p per mile. Hybrid cars are treated as either petrol or diesel cars for the purposes of AFRs. These rates apply from 1 June 2024, but you can still use the previous rates for one month from that date. Employees with fully electric vehicles and high mileage for June would be slightly better off if you use the rates for the current quarter (9p per mile), with diesel and petrol users better off using the new AFRs.