22 May 2026
HM Revenue and Customs (HMRC) have updated the Advisory Fuel Rates (AFR) from 1 June 2026.
These rates are used for employers and company car drivers to use for business travel or private fuel repayments. These rates are reviewed regularly throughout the year, typically every quarter, and should not be confused with the Approved Mileage Allowance Payments (AMAPs) that are given to employees using their own personal vehicle for business purposes.
AFR rates are the official mileage rates employers can use when reimbursing employees for business miles travelled in a company car. They can also be used when an employee needs to repay the cost of private fuel used in a company car.
Petrol and LPG
|
Engine Size |
Petrol |
LPG |
|
1400cc or less |
14p |
11p |
|
1401cc to 2000cc |
17p |
13p |
|
Over 2000cc |
26p |
21p |
Diesel
|
Engine Size |
Diesel |
|
1600cc or less |
15p |
|
1601cc to 2000cc |
17p |
|
Over 2000cc |
23p |
Electric
|
Charging Location |
Electric |
|
Home Charger |
7p |
|
Public Charger |
15p |
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates. For journeys where a car is charged at both a public and home charger, the mileage should be split on a fair and reasonable basis.
You can use the previous rates for up to 1 month from the date any new rates apply.
These rates are not mandatory. Employers can use their own rates if they have evidence to justify them, but using HMRC’s advisory rates is the simplest way to reimburse the employee for the fuel they paid for themselves when using their company car for any business travel. As long as the employee is not paid more than the published rate, there is no taxable benefit and no Class 1A National insurance payable by the employer.
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