HMRC Advisory Fuel Rates
The pence-per-mile rates HMRC publishes for company cars — petrol, diesel and LPG by engine size, and the advisory electric rate — in force from 1 September 2026, with the previous quarters and the next review date.
Advisory fuel rates from 1 September 2026
Rates per business mile for a company car. Petrol and LPG share the same engine-size bands; diesel uses its own.
| Engine size | Petrol | LPG |
|---|---|---|
| 1400cc or less | 14 pence | 11 pence |
| 1401cc to 2000cc | 17 pence | 13 pence |
| Over 2000cc | 27 pence | 20 pence |
| Engine size | Diesel |
|---|---|
| 1600cc or less | 15 pence |
| 1601cc to 2000cc | 16 pence |
| Over 2000cc | 22 pence |
| Fully electric car | Advisory electric rate |
|---|---|
| Home charger | 7 pence |
| Public charger | 15 pence |
Hybrid cars use the petrol or diesel rate. Where a company car is charged both at home and in public, HMRC lets you apportion the mileage between the two electric rates on a fair and reasonable basis.
What changed on 1 September 2026
| Fuel and engine size | Before | From 1 September 2026 |
|---|---|---|
| Petrol, 1400cc or less | 14p | 14p |
| Petrol, 1401cc to 2000cc | 17p | 17p |
| Petrol, Over 2000cc | 26p | 27p |
| Diesel, 1600cc or less | 15p | 15p |
| Diesel, 1601cc to 2000cc | 17p | 16p |
| Diesel, Over 2000cc | 23p | 22p |
| LPG, 1400cc or less | 11p | 11p |
| LPG, 1401cc to 2000cc | 13p | 13p |
| LPG, Over 2000cc | 21p | 20p |
You can keep using the previous quarter's rates for up to 1 month after new rates apply. HMRC's next quarterly review is on 1 December 2026; the review dates are 1 March, 1 June, 1 September, 1 December every year.
When you can use advisory fuel rates
The rates apply only to employees using a company car, in two situations:
- Reimbursing business travel. If the mileage rate you pay is no higher than the advisory fuel rate for the car's engine size and fuel type, there is no taxable profit and no Class 1A National Insurance to pay. You can pay more if you can show the fuel cost per mile really is higher.
- Repaying private fuel. If an employee records all private mileage and repays the employer at the advisory rate or higher, there is no car fuel benefit charge.
For an employee driving their own car, use the Approved Mileage Allowance Payment rates instead — 55p a mile for the first 10,000 business miles. See HMRC mileage allowance rates.
Previous advisory fuel rates
| Period | Petrol | Diesel | LPG | Electric (home / public) |
|---|---|---|---|---|
| From 1 June 2026 to 31 August 2026 | 14p / 17p / 26p | 15p / 17p / 23p | 11p / 13p / 21p | 7p / 15p |
| From 1 March 2026 to 31 May 2026 | 12p / 14p / 22p | 12p / 13p / 18p | 10p / 12p / 19p | 7p / 15p |
| From 1 December 2025 to 28 February 2026 | 12p / 14p / 22p | 12p / 13p / 18p | 11p / 13p / 21p | 7p / 14p |
| From 1 September 2025 to 30 November 2025 | 12p / 14p / 22p | 12p / 13p / 18p | 11p / 13p / 21p | 8p / 14p |
Each fuel lists the smallest, middle and largest engine-size band, in the same order as the current tables above.
Frequently asked questions
What are the current HMRC advisory fuel rates?
From 1 September 2026: petrol 14p, 17p or 27p a mile and LPG 11p, 13p or 20p a mile (1400cc or less, 1401cc to 2000cc, Over 2000cc); diesel 15p, 16p or 22p a mile (1600cc or less, 1601cc to 2000cc, Over 2000cc). The advisory electric rate is 7p a mile for home charging and 15p for public charging.
Who can use advisory fuel rates?
Only employers and employees with a company car. HMRC says the rates apply when you reimburse employees for business travel in their company cars, or when employees repay the cost of fuel used for private travel, and must not be used in any other circumstances.
What is the difference between advisory fuel rates and mileage allowance?
Advisory fuel rates cover fuel only, for a company car the employer already provides. Approved Mileage Allowance Payments (AMAPs) are for an employee using their own car and cover all running costs, so they are higher: 55p a mile for the first 10,000 business miles and 25p after that. Using the AMAP rate for a company car, or the advisory fuel rate for a private car, gives the wrong tax result.
When do advisory fuel rates change?
HMRC reviews them quarterly, on 1 March, 1 June, 1 September, 1 December. The next review is 1 December 2026. Employers can keep using the previous rates for up to 1 month from the date new rates apply.
Which rate applies to a hybrid car?
HMRC treats hybrid cars as either petrol or diesel cars for advisory fuel rates, so use the petrol or diesel rate for the car's engine size. The advisory electric rate is only for fully electric cars.
Is anything taxable if I pay the advisory fuel rate?
No. If the rate you pay is no higher than the advisory fuel rate for the car's engine size and fuel type, HMRC says there is no taxable profit and no Class 1A National Insurance to pay. If you pay more and cannot show the fuel cost per mile is higher, the excess is taxable and counts as earnings for Class 1 National Insurance.
Can I avoid the car fuel benefit charge with advisory fuel rates?
Yes, if the employee records all private mileage and repays the employer for private fuel at the advisory rate (or higher), there is no fuel benefit charge.
Sources
Reflects HMRC advisory fuel rates in force from 1 September 2026, verified against GOV.UK.
Related Calculators
Company Car Fuel Benefit Calculator
Tax and break-even value of employer-paid private fuel.
Company Car Tax Calculator
BIK tax based on CO2 emissions and list price.
HMRC Mileage Allowance Rates 2026/27
55p/25p AMAP car rate, 24p motorcycle, 20p bicycle, 5p passenger — plus the NIC flat-rate quirk and prior-year rates.