HMRC advisory fuel rates for company cars from 1 March 2026
Advisory fuel rates for company car users for petrol and diesel vehicles remain unchanged, with increase in public charging electric rate
From 1 March 2026, the recently introduced split advisory electric rates has risen 1p for public charging, and remains unchanged for domestic use.
For journeys where a company car is charged at both public and residential locations, companies can apportion the mileage based on how much charging happens at each place. The apportionment calculation should be ‘fair and reasonable’, HMRC said.
The advisory fuel rates for petrol and diesel remain unchanged on previous quarter. These rates last changed nine months ago highlighting stability of fuel prices although this will likely be impacted by rise in barrel costs due to war in the Middle East.
The previous rates, effective from December 2025, can be used for up to one month from the date the new rates apply.
The rates only apply in the following circumstances:
- reimburse employees for business travel in their company cars; or
- require employees to repay the cost of fuel used for private travel.
These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.
Advisory fuel and electric rates from 1 March 2026
Electric
| Home charging | Public charging |
| 7p (7p) | 15p (14p) |
Petrol/LPG
| Engine size | Petrol – amount per mile (previous) | LPG – amount per mile (previous) |
| 1400cc or less | 12p (12p) | 10p (11p) |
| 1401cc to 2000cc | 14p (14p) | 12p (13p) |
| Over 2000cc | 22p (22p) | 19p (21p) |
Diesel
| Engine size | Diesel – amount per mile (previous) |
| Up to 1600cc | 12p (12p) |
| 1601cc to 2000cc | 13p (13p) |
| Over 2000cc | 18p (18p) |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The latest HMRC guidance states: ‘If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.
‘If your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation.
‘If you pay rates that are higher than the advisory rates but cannot show that the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes’.
HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.
