What are the HMRC advisory fuel rates for 2026?

Full answer

HMRC advisory fuel rates (AFRs) are used where an employer reimburses employees for fuel used in a company car for business travel, or where an employee must repay the cost of private fuel provided in a company car. **Q2 2026 advisory fuel rates (effective 1 March 2026)** | Engine size | Petrol | LPG | |---|---|---| | Up to 1400cc | 13p | 10p | | 1401–2000cc | 15p | 11p | | Over 2000cc | 23p | 17p | | Engine size | Diesel | |---|---| | Up to 1600cc | 12p | | 1601–2000cc | 14p | | Over 2000cc | 17p | **Electric vehicles** The AFR for fully electric company cars is 9p per mile from 1 March 2026. **How they are used** 1. **Employer reimburses business mileage in company car**: pay up to the AFR tax-free. Anything above the AFR is taxable. 2. **Employee repays private fuel**: use the AFR × private miles to calculate the amount the employee must repay to avoid the fuel benefit charge (which would otherwise cost up to £4,800+ in Benefit in Kind tax for 2026/27). 3. **Not for own-vehicle business mileage**: use AMAP rates (45p/25p) for personal cars, not AFRs. **HMRC updates rates quarterly** Rates change on 1 June, 1 September, 1 December, and 1 March each year based on fuel price movements. Always check GOV.UK for the current quarter's rates before processing expenses.