Static company car advisory fuel rates
The amount that employers can reimburse staff for business travel in company cars from 1 December 2025 has been announced. What's changing?
visory fuel rates (AFRs) 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. Providing HMRC’s rates are used, there are no income tax consequences for the employee. HMRC has now published the AFRs applicable from 1 December 2025, but there are no changes to the rates for petrol, LPG or diesel.
The rate per mile will continue to be:
|
Engine size |
Petrol |
LPG |
|
1,400cc or less |
12p |
11p |
|
1,401cc to 2,000cc |
14p |
13p |
|
Over 2,000cc |
22p |
21p |
|
Engine size |
Diesel |
|
1,600cc or less |
12p |
|
1,601cc to 2,000cc |
13p |
|
Over 2,000cc |
18p |
However, the rate for fully electric vehicles has gone down to 7p per mile for those that charge their car at home. There are no changes to the rates for public chargers as shown below:
|
Charging location |
Electric - rate per mile |
|
Home charger |
7p |
|
Public charger |
14p |
You can continue to use the previous rates until 1 January 2026, which will save you 1p per mile if you're using a home charger for an electric vehicle.
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