25/05/2026
β½ HMRC Advisory Fuel Rates Update β Effective 1 March 2026!
HMRC has published the latest Advisory Fuel Rates (AFRs) for company car users. If your business reimburses employees for business mileage, make sure you're using the correct rates to stay compliant!
Here's a summary of the current rates:
π Petrol
β’ Up to 1,400cc β 12p per mile
β’ 1,401cc to 2,000cc β 14p per mile
β’ Over 2,000cc β 22p per mile
π Diesel
β’ Up to 1,600cc β 12p per mile
β’ 1,601cc to 2,000cc β 13p per mile
β’ Over 2,000cc β 18p per mile
π΅ LPG (slight decrease this quarter)
β’ Up to 1,400cc β 10p per mile
β’ 1,401cc to 2,000cc β 12p per mile
β’ Over 2,000cc β 19p per mile
β‘ Electric Vehicles
β’ Home charging β 7p per mile
β’ Public charging β 15p per mile (up 1p from last quarter!)
π Hybrid vehicles are treated as petrol or diesel for AFR purposes.
Remember β using the correct rates means reimbursements are tax and NI free for your employees. Using the wrong rates could lead to unexpected tax liabilities!
Not sure if your business is handling mileage reimbursements correctly? We're here to help! π
At Accountify Chartered Accountants, we help businesses stay on top of HMRC updates so you never get caught out.
π Call us: 020 3488 9323
π Visit: accountify.co.uk
π§ Email: [email protected]