AFR & VED Rates 2024

The Advisory fuel rates are reviewed four times a year by HM revenue and customs and are recommended as a guide to reclaiming business mileage.

 

Advisory Fuel Rates from 1 March 2023

Engine size (cc )
Petrol – Pence per mile
Diesel – Pence per mile LPG – Pence per mile
0 –  1400 13.0 13.0 10.0
1401 – 1600 15.0 13.0 11.0
1601 – 2000 15 .0 15.0 11.0
2000 and Over 23.0 20.0 17.0

 

Please Note :

  • Hybrid cars are treated as either petrol or diesel cars for this AFR purpose. HMRC has not issued AFR’s .
  • The advisory electricity rate (AER) for plug-in cars remains unchanged at 9.0 ppm.

 

Source: HM Revenue & Customs 

 

Annual VED road tax rate

In April 2023 the 2023/24 rates were increased to keep in line with inflation. HMRC has confirmed that the rates for each tax band will increase again from April 2024. This could be by as much as 6% given the UK’s recent high inflation level. Experts predict that the standard rate could rise from £180 to £190 for the 2024/25 tax year.

Vehicles which cost £40,000 or more (after options) are subject to a further £390 annual supplement (this is up from £355 in 2021/2022) that runs for five years. This kicks in after the first-year’s CO2-based charge, so you’ll pay the supplement from years two to six of the car’s life.

This means you will pay £570 a year (£560 for hybrids) for five years if your car tips the £40,000 barrier. After that, annual road tax reverts back to the £180 a year (£170 for AFVs) charge. Fully electric cars are the only exception to this rule – they’re exempt from this charge altogether, as well as both first-year and annual road tax.

If you haggle a plus-£40,000 car down to below £40,000, you’ll still have to pay the supplement as it’s based on the cost of the car for tax purposes. The £40,000 calculation also includes all options and trim levels, and there is effectively no escaping this surcharge.

On 1 April 2025 EVs lose their VED exemption. They will pay the standard annual rate from the second year of registration onwards, currently set at £180 but this is likely to have increased by then in line with inflation. Hybrids will also lose the £10 annual discount which they currently benefit from.

 

Vehicle Excise Duty ( VED ) tax band Table – 2023 / 2024 

 

CO2 Emissions (g/km) Standard petrol/diesel rate First Year Rate
0 £0 £0
1 to 50 £180 £10
51 to 75 £180 £30
76 to 90 £180 £130
91 to 100 £180 £165
101 to 110 £180 £185
111 to 130 £180 £210
131 to 150 £180 £255
151 to 170 £180 £645
171 to 190 £180 £1,040
191 to 225 £180 £1,565
226 to 255 £180 £2,220
Over 255 £180 £2,605

 

Please Note:

Information obtained from www.Gov.uk  and other sources

All information on this page is for illustration only. ecofleet accept no liability / responsibility regarding the contents of this page. E &EO

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