Advisory fuel rates are used for reimbursing employees for business travel in company cars, using private fuel. They are different to the approved rates used to reimburse employees for business miles in private vehicles.
Advisory fuel rates are an important consideration for businesses that require employees to travel for work using company cars. These rates are also applicable when employees need to reimburse their employers for the cost of fuel for private travel. However, it’s worth noting that these rates are not used when paying employees mileage for business miles in their private vehicles.
It is possible to use different rates if you can show the cost of business travel is higher or that the cost of private fuel is lower depending on the situation. Most businesses are likely to be best to stay with the advisory fuel rates. Lastly, it’s interesting to note that electric vehicles also have an advisory rate, which was 9p per mile from 1st December 2023, which is the rate to reimburse employees for business miles in an electric business vehicle, having used personal electricity to charge the vehicle.
Read more on our blog https://bit.ly/3uiqHrS