Latest advisory fuel rates published
The amount that employers can reimburse staff for business travel in company cars changes from 1 June 2025. What are the new rates?
Advisory fuel rates for company cars are updated by HMRC on a quarterly basis due to fluctuations in fuel prices. The rates determine the amount that can be paid to an employee using a company car for business mileage, or where an employee has to reimburse their employer for private journeys. Where HMRC’s rates are used, there are no income tax consequences for the employee. HMRC has now published the advisory rates applicable from 1 June 2025. The rate per mile will be:
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Engine size |
Petrol |
LPG |
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1,400cc or less |
12p |
11p |
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1,401cc to 2,000cc |
14p |
13p |
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Over 2,000cc |
22p |
21p |
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Engine size |
Diesel |
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1,600cc or less |
11p |
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1,601cc to 2,000cc |
13p |
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Over 2,000cc |
17p |
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The rate for fully electric vehicles continues to be 7p per mile. Hybrid cars are treated as either petrol or diesel cars for the purposes of advisory fuel rates.
These rates apply from 1 June 2025, but it's possible to use the previous rates for another month. As the rates for small diesel engines and larger petrol engines have gone down by 1p, drivers of those vehicles will be slightly better off using the rates for the current quarter.
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