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 December 2025 are:
Engine size
Petrol
1400cc or less
12p
1401cc- 2000cc
14p
Over 2000cc
22p
Diesel
1600cc or less
1601cc - 2000cc
13p
18p
LPG
11p
21p
HMRC guidance states that the rates only apply when you either:
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
7p
Public Charger
If you would like to discuss your company car policy, please contact us.
READ MORE
02/12/2025
View all >
30/03/2026
Hundreds of employers handed penalties for illegally underpaying workers
Almost 400 employers from across the UK have been named for failing to pay the minimum wage to tens of thousands of workers, says the government.
HMRC website seeks to close tax knowledge gaps
HMRC has launched a new ‘Tax Confident’ website which it says will help people fill their tax knowledge gaps.
Self-employed gender pay gap is £51 per day
Self-employed women in the UK earn £51 less per day than men on average, according to IPSE, the self-employed association.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.