Advisory Fuel Rates

If you reimburse fuel or charging costs for employees using a company car for business travel there will be no taxable profit and no Class 1A national insurance, provided the mileage amount paid does not exceed the advisory rates

From 1 September 2025 the advisory rates per mile for non-electric vehicles are:

The new rates can be applied to journeys taken from 1 September; however, you can continue to use the previous rates until 30 September 2025.

Previously, the advisory rate for electric vehicle charging was the same no matter where charging occurred. As of 1 September, using a public charger will attract a higher reimbursement rate than charg­ing at home or another private charging location. This change reflects the additional cost of charging in a public location, such as a motorway service sta­tion or hotel, when travelling for business.

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

Hybrid cars may be treated as petrol or electric for these purposes.