Advisory fuel rates (company car drivers)

Can employees claim for mileage in a company car? What are HMRC's advisory fuel rates?

This is a freeview 'At a glance' guide to advisory fuel rates for company car drivers. 

At a glance

The rates from 1 December 2025:

* Fully electric cars only

Advisory fuel rates are set by HMRC

• Employers can use these rates to reimburse Company car drivers for business fuel.
• These rates can also be used if employees are required to repay the cost of fuel used for private travel.
• These rates should not be used in relation to Vans.
• HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December. 
• Hybrid cars are treated as either petrol or diesel cars for this purpose.
• For journeys where a fully electric company car is charged at both public and residential locations, you can apportion the mileage based on how much charging happens at each place. The apportionment calculation should be fair and reasonable. 
• These amounts also apply for VAT purposes, but employers can only reclaim input VAT if the employee supplies a receipt.

On 1 December 2017, as part of the Taxation of employee expenses: Response to the call for evidence, the government announced it had considered the position and had no plans to change the current system; in particular it would not introduce specific rates for hybrid and electric cars. However, in August 2018 HMRC announced that from 1 September 2018:

• They would accept that if employers pay up to the advisory rate, which was at that time four pence per mile, when reimbursing employees for business travel in a fully electric company car there is no profit for Income Tax or earnings for National Insurance purposes.
• Employers can use their own rate if it better reflects circumstances, for example, if their cars are more efficient, or if the cost of business travel is higher than the guideline rate. 
• If employers pay a rate that is higher than the advisory rate and cannot demonstrate the electricity cost per mile is higher, they must treat any excess as taxable income and as earnings for Class 1 National Insurance purposes.

Rates from 1 September 2025

*Fully electric cars only

Rates from 1 June 2025

*Fully electric cars only

Rates from 1 March 2025

*Fully electric cars only

Rates from 1 December 2024

*Fully electric cars only

Rates from 1 September 2024 

*Fully electric cars only

Rates from 1 June 2024 

*Fully electric cars only

Rates from 1 March 2024 

*Fully electric cars only

Rates from 1 December 2023

 *Fully electric cars only

Rates from 1 September 2023

 *Fully electric cars only

Rates from 1 June 2023 

 *Fully electric cars only 

Rates from 1 March 2023

*Fully electric cars only   

Rates from 1 December 2022

*Fully electric cars only

Rates from 1 September 2022

*Fully electric cars only

Rates from 1 June 2022

*Fully electric cars only

Rates from 1 March 2022

*Fully electric cars only

Rates from 1 December 2021

*Fully electric cars only

Rates from 1 September 2021

*Fully electric cars only

Earlier rates