Morris Crocker - Chartered Accountants
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Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 September 2025.

 

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 September 2025 are:

Engine size Petrol
1400cc or less 12p
1401cc - 2000cc 14p
Over 2000cc 22p
Engine size Diesel
1600cc or less 12p
1601cc - 2000cc 13p
Over 2000cc 18p
Engine size  LPG
1400cc or less 11p
1401cc - 2000cc 13p
Over 2000cc 21p

 

HMRC guidance states that the rates only apply when you either:

  • reimburse employees for business travel in their company cars
  • require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.

Advisory Electricity Rate  
Home Charger 8p
Public Charger 14p

 

If you would like to discuss your company car policy, please contact us.

 

 

09/09/2025

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REF: MC/NL/1.2