HMRC Advisory Fuel Rates are published each year on December 1st, March 1st, June 1st and September 1st of each year.
From 1 March 2025, the advisory electricity rate for fully electric cars is 7 pence per mile. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
| Engine size | Petrol - rate per mile | LPG — rate per mile |
| 1400cc or less | 12 pence | 11 pence |
| 1401cc to 2000cc | 15 pence | 13 pence |
| Over 2000cc | 23 pence | 21 pence |
| Engine size | Diesel — rate per mile |
| 1600cc or less | 12 pence |
| 1601cc to 2000cc | 13 pence |
| Over 2000cc | 17 pence |
If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.
If your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation.
If you pay rates that are higher than the advisory rates but cannot show that the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.
Mileage Allowance Payments (MAPs) are paid to employees for using their own vehicle for the purpose of business journeys.
| First 10.000 business miles | Each business mile over 10.000 | |
| Cars and vans | 45 pence | 25 pence |
| Motorcycles | 24 pence | 24 pence |
| Bicycles | 20 pence | 20 pence |
The current tax year is from 6 April 2025 to 5 April 2026.
An additional 5p per passenger per business mile can be paid for the carrying of fellow employees in a car or van on journeys which are also work journeys for them.
Source: https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax https://www.gov.uk/guidance/advisory-fuel-rates