UK: HMRC company car advisory fuel rates from 1 September 2026
Farrell & Farrell
Aug 27
1 min read
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 September 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.
It's fascinating to see the distinct advisory electric rates being introduced for home vs. public charging from September 2026; 7p versus 15p is a significant difference that will require careful tracking. The constant review of these rates by HMRC certainly keeps businesses on their toes, almost like an infinite craft of adjustments to stay compliant.