New HMRC rules for petrol, diesel and electric car drivers issued
There are major changes taking place September 1st that could result in British motorists receiving less money for their vehicles. From the beginning of September, the latest HMRC fuel advisory rates will take effect and may aggravate some motorists.
For employees using company vehicles, the rates can be used to reimburse them for business travel or to reimburse them for fuel used for private travel.
Following the announcement by HMRC that rates would drop again, from 9p since May, electric car drivers could be furious at the new rates.
BVRLA (British Vehicle Rental and Licensing Agency) has warned drivers not to be caught unaware of the changes.
It stated: "Members and their customers are advised to shop around when it comes to home charging and make sure they are getting the best energy tariff available to suit their circumstances."
It is the third time HMRC has updated the rate this year. The fourth and final change will take effect on December 1.
Advisory fuel rates from September 1, 2024
Petrol
Engines up to 1,400cc - reduced to 13p
Between 1,401cc and 2,000cc - reduced to 15p
Over 2,000cc - reduced to 24p
Diesel
Engines up to 1,600cc - reduced to 12p
Between 1,601cc and 2,000cc - reduced to 14p
Over 2,000cc - reduced to 18p
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 EVs - reduced to 7p
Any hybrid vehicles are treated either as petrol or diesel vehicles for advisory fuel rates.