HMRC have published new advisory fuel rates from 1 March 2026. These are the suggested reimbursement rates for employees’ private mileage using their company car. Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.
The petrol, diesel and home charging rates have remained static this quarter, while the LPG and public charging rates have changed.
The new rates per mile are:
| Engine Size
(N/A for fully electric cars) |
Petrol | Diesel | LPG | Electric*
(Home charger) |
Electric*
(Public charger) |
| 1400cc or less | 12p (12p) | 10p (11p) | 7p (7p) | 15p (14p) | |
| 1600cc or less | 12p (12p) | ||||
| 1401cc to 2000cc | 14p (14p) | 12p (13p) | |||
| 1601 to 2000cc | 13p (13p) | ||||
| Over 2000cc | 22p (22p) | 18p (18p) | 19p (21p) |
Previous rates are shown in brackets.
*Fully electric cars only. Note that for hybrid cars, you must use the petrol or diesel rate.
You can also continue to use the previous rates until 31 March 2026.
Employees using their own cars
For employees using their own cars for business purposes, the Advisory Mileage Allowance Payment (AMAP) tax-free reimbursement rate continues to be 45p per mile (plus 5p per passenger) for the first 10,000 business miles, reducing to 25p per mile thereafter.
Input VAT
Within the 45p/25p AMAP payments, the amounts in the above table represent the fuel element. The employer is able to reclaim 20/120 of the fuel amount as input VAT provided the claim is supported by a VAT invoice from the filling station. For a 1300cc petrol-engine car, 2p per mile can be reclaimed as input VAT (12p x 20/120).
