Advisory fuel rates for company cars
New company car advisory fuel rates have been published and took effect from 1 December 2025.
The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 December 2025 are:
Engine size
Petrol
1400cc or less
12p
1401cc - 2000cc
14p
Over 2000cc
22p
Engine size
Diesel
1600cc or less
12p
1601cc - 2000cc
13p
Over 2000cc
18p
Engine size
LPG
1400cc or less
11p
1401cc - 2000cc
13p
Over 2000cc
21p
HMRC guidance states that the rates only apply when you either:
reimburse employees for business travel in their company cars
require employees to repay the cost of fuel used for private travel.
You must not use these rates in any other circumstances.
The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.
Advisory Electricity Rate
Home Charger
7p
Public Charger
14p
If you would like to discuss your company car policy, please contact us.
Internet link: GOV.UK AFR