Petrol, diesel, electric drivers warned after new HMRC rules start

Petrol, diesel and electric vehicle drivers have been warned over new costs under huge HMRC rule changes. The new rates were introduced on June 1, 2024 with motorists urged to brush up their knowledge on the new system.

Advisory fuel rates are reviewed quarterly by HMRC and have been updated. Darren Miller, from BigWantsYourCar.com, said: "Coupled with the introduction of an advisory electric rate for fully electric cars, the updated Advisory Fuel Rates effective from June 1, 2024, mark a significant development in fuel reimbursement practices.

“Employers and employees should adapt to these changes and incorporate electric rates into their reimbursement policies to encourage the use of eco-friendly transportation solutions." New advisory fuel rates from June 1, 2024 for petrol drivers show engines up to 1,400cc will be charged 14p.

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Cars between 1,401cc and 2,000cc will be charged 16p and over 2,000cc will be charged 26p. Diesel engines up to 1,600cc will see motorists charged 13p and between 1,601cc and 2,000cc charged 15p. Drivers over 2,000cc -will be charged 20p,

LPG engines up to 1,400cc will see drivers charged 11p and drivers between 1,401cc and 2,000cc will be charged 13p. Drivers of vehicles over 2,000cc will be charged 21p. Electric vehicle rates are changing too. All EVs will be charged 8p and any hybrid vehicles are treated either as petrol or diesel vehicles for advisory fuel rates.

LPG motorists are given a 20 per cent lower rate than petrol because of its "lower volumetric energy density". HMRC reviews rates quarterly on:

  • 1 March

  • 1 June

  • 1 September

  • 1 December

Rates per mile which end in 0.5 are rounded down to the nearest whole penny for the advisory fuel rate when the underlying unrounded figure ends in a number less than 0.5 (for example 0.487). When the underlying unrounded figure ends in a number greater than 0.5 (for example 0.513) it is rounded up to the nearest whole penny.