HMRC have published new advisory fuel rates for company car drivers that apply from 1 September 2025. The rate for fully electric cars will now depend on whether the car is charged at an employee's home address or using a public charger.
Petrol and LPG rates have remained static this quarter, whilst some diesel rates have increased. There are now two rates for fully electric cars, depending on where the car is charged.
The new rates per mile are:
|
Engine size |
Petrol |
Diesel |
LPG |
Electric* |
Electric* |
|
1,400cc or less |
12p |
11p |
8p |
14p |
|
|
1,600cc or less |
12p |
8p |
14p |
||
|
1,401cc - 2,000cc |
14p |
13p |
8p |
14p |
|
|
1,601cc to 2,000cc |
13p |
8p |
14p |
||
|
Over 2,000cc. |
22p |
18p |
21p |
8p |
14p |
* Fully electric cars only
Hybrid cars are treated as either petrol or diesel cars for these purposes.
The old rates may be used until 30 September 2025, see Advisory fuel rates (company car drivers).
Useful guides on this topic
Company cars
Company car tax. How do you work out car benefit? How do you work out the car fuel benefit? Are there savings for low-emission vehicles? How do you reduce the car benefit? Cars, the tax tribunals and Top Tax Tips.
Car fuel benefit charges
What is the car fuel benefit charge? How do you apply it?
Pool cars
What is a pool car? How is it taxed? When does it become a benefit? What are the rules? Is it still worth having them?
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