New HMRC rules launching today could have major impact on petrol, diesel and electric car owners

Mileage rates apply to reimbursing employees for business travel in their company cars or if employees need to pay for the cost of fuel for private travel.

These HMRC rates are not permitted in any other circumstances. if the mileage rate paid by drivers is no higher than the AFR for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.

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Drivers are being urged to make themselves aware of the new AFRs

PA

The advisory fuel rates for petrol and diesel company cars have all fallen compared to the current rates, which were announced at the start of September.

Rates are measured using data from the Department for Energy Security and Net Zero (DESNZ) for petrol and diesel and the Automobile Association website for LPG.

HMRC uses data from DESNZ, the Office for National Statistics, car consumption rates from the DfT and annual car sales volumes to businesses for EV rates.

To help drivers adjust to the new HMRC changes, GB News has rounded up the latest advisory fuel rates being introduced today.

Advisory fuel rates from December 1, 2024

Petrol

Engines up to 1,400cc – Reduced to 12p

Between 1,401cc and 2,000cc – Reduced to 14p

Over 2,000cc – Reduced to 23p

Diesel

Engines up to 1,600cc – Reduced to 11p

Between 1,601cc and 2,000cc – Reduced to 13p

Over 2,000cc – Reduced to 17p

Liquefied Petroleum Gas (LPG)

Engines up to 1,400cc – Remains at 11p

Between 1,401cc and 2,000cc – Remains at 13p

Over 2,000cc – Remains at 21p

Electric

All electric vehicles – Remains at 7p

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HMRC also includes advisory fuel rates for vehicles powered by LPG

REUTERS

For the purposes of advistory fuel rates, hybrid vehicles are treated as either petrol or diesel cars, depending on its design.