Whether you drive petrol, diesel or electric, HMRC has just updated its official fuel rates — and if you use a company car or claim mileage for work, it could affect how much you get paid back (or have to pay).
These Advisory Fuel Rates (AFRs) are set by HMRC and updated every three months to reflect changing fuel prices. They're used to calculate how much employers should reimburse employees for fuel when driving a company car for work. They're also used when an employee has to repay fuel costs for any personal use.
So, what’s changed?
Petrol cars:
- If your engine is between 1.4 and 2 litres, the rate drops from 15p to 14p per mile.
- Over 2 litres? It’s now 22p per mile (down from 23p).
Diesel cars:
- Engines up to 1.6 litres drop to 11p per mile (was 12p).
- Larger diesel engines? No change.
Electric cars:
- The rate stays the same: 7p per mile.
| Engine size | Petrol (per mile) | Diesel (per mile) |
|---|---|---|
| 1.4 litres or less | 12p | — |
| 1.4 to 1.6 litres | 14p | 11p |
| 1.6 to 2 litres | 14p | 13p |
| Over 2 litres | 22p | 17p |
Why does this matter?
These rates are more than just guidance — they help make sure no one gets hit with unexpected tax bills. If your company sticks to HMRC’s rates, there’s no extra tax to pay and no extra National Insurance either.
The rates are based on real fuel data from government sources like the Office for National Statistics and Department for Transport, so they reflect what’s actually happening at the pump (and plug).
