Advisory Fuel Rates from 1st September 2026
Posted on 1st September 2026 by Joanne Stoneman
The approved amount that employers can reimburse staff for business travel in company cars changes from 1st September 2026. What are the new rates?
The approved amount that employers can reimburse staff for business travel in company cars changes from 1st September 2026. What are the new rates?
HMRC has published the latest advisory fuel and electric rates (AFRs) for company cars, effective from 1 September 2026. Several rates have changed since the previous quarter. What should employers be aware of?
AFRs are used where employers reimburse employees for business travel in company cars, or where employees repay the cost of fuel used for private travel. Reimbursements at or below the advisory rate are not treated as taxable earnings and do not incur NI. The rates applying from 1st September 2026 are as follows:
Petrol / LPG:
1,400cc or less
Petrol per mile: 14p
LPG per mile: 11p
1,401cc to 2,000cc
Petrol per mile: 17p
LPG per mile: 13p
Over 2,000cc
Petrol per mile: 27p
LPG per mile: 20p
Diesel:
1,600cc or less
Diesel per mile: 15p
1,601cc to 2,000cc
Diesel per mile: 16p
Over 2,000cc
Diesel per mile: 22p
Electric:
Home Charger
7p
Public Charger
15p