Car, Van & Fuel Rates for 2023/24

fuel rates


2024/25 Payroll Legislation Guide

The facts, figures, thresholds and allowances for 2024/25, in one handy guide.

Does your organisation use vehicles business purposes? If so, then you’ll probably want to keep up to date with the UK fuel rates for the new tax year (2023-2024). Here’s what you need to know:

Firstly, it’s important to understand what the UK fuel rates are. They’re used to calculate the amount of fuel that can be reimbursed tax-free when employees use their own vehicles for business purposes. These rates are reviewed every three months and are based on the average fuel prices during the preceding quarter.

So, what are the UK fuel rates for the new tax year? From April 2023, the rates for petrol and diesel cars with engine sizes up to 1,400cc will be 13p per mile. For petrol and diesel cars with engine sizes over 1,400cc, the rates will be 15p per mile. The rate for electric cars will remain at 9p per mile.

Here’s the full, easy-to-digest overview:

Company cars and vans

Charge Rate
Van benefit charge £3,960
Car fuel benefit charge The car fuel benefit charge is calculated by multiplying the fuel benefit charge multiplier by the car’s appropriate percentage; that is the CO₂ emissions derived percentage used to calculate the car benefit charge, including any diesel supplement.
Van fuel benefit charge £757
Car fuel multiplier £27,800

Private vehicle approved mileage allowance

Allowance Rate
First 10,000 business miles 45p per mile
Over 10,000 business miles 25p per mile
Motorcycles 24p per mile
Cycles 20p per mile
Passenger rate 5p per mile

It’s important to note that these rates are advisory, so you don’t have to use them if you don’t want to. If you choose to use a higher rate, you’ll need to keep records to support this!

It’s also worth remembering that these rates only apply to business journeys, not personal ones. If an employee uses their own vehicle for personal use, they can’t claim back the cost of fuel for this.

Keeping accurate records of your employee’s business mileage and reimbursing them the correct amount for fuel is really important. This not only helps makes sure you’re complying with tax regulations, but also helps to ensure your employees are being fairly compensated for their expenses. An expense management platform (such as Capture Expense) can make this super easy!

Overall, the UK fuel rates for the new tax year are relatively similar to previous years, with only slight increases in some categories. As always, it’s important to keep up to date with any changes in regulations or rates and ensure you’re complying with these in your business practices.

Cintra - Payroll Legislation Guide 2425

Payroll Legislation Guide

The facts, figures, thresholds and allowances for 2024/25 spanning tax, National Insurance, pensions, statutory payments and more.

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Danielle Nicholson
Danielle is our Communications and Content Manager, leading the content strategy for Cintra. Outside of her passion for all things copywriting, she loves being on the water in a kayak or taking long walks with her Golden Retriever!