UK: HMRC company car advisory fuel rates from 1 March 2026

These HMRC rates only apply to:-

• Reimburse employees for business travel in their company cars; or

• Require employees to repay the cost of fuel used for private travel

Electric cars - from 1 March 2026 the advisory electric rates for fully electric cars will be:-

• 7p per mile for home charging

• 15p per mile for public charging

Electricity is not a fuel for car fuel benefit purposes.

When employees are reimbursed up to the advisory fuel rates for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance arising.

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews these rates quarterly.

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