HMRC advisory fuel rates for company car users from 1 September 2025

Advisory fuel rates for company car users have been increased for some diesel vehicles, petrol vehicles are unchanged and electric vehicle rates have increased and are based on the charging location.

The advisory fuel rates that apply from 1 September 2025 have been adjusted with a 1p increase for diesel engines of 1600cc or less, and diesel engines over 2000cc. Deisel engines 1601cc to 2000cc remain unchanged.  

Electric

From 1 September 2025 the advisory electric rates for fully electric cars will be:

• 8 pence per mile for home charging
• 12 pence per mile for public charging

The previous rates, effective from June 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.

From 1 September 2025

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

Looking for advice? Check out our full range of services. From payroll help to taxation advice, our expert team is available to lend a hand.