01/06/2026
📢 New HMRC Advisory Fuel Rates are now in effect
HMRC has published its latest Advisory Fuel Rates (AFRs), effective from 1 June 2026, for employees using company cars for business travel.
The updated rates include changes to several petrol, diesel and LPG vehicles, with increases and decreases depending on engine size and fuel type. The electric vehicle rate remains unchanged at 7p per mile.
Advisory Fuel Rates are used to:
✔ Reimburse employees for business mileage in company cars
✔ Calculate repayments where employers provide fuel for private mileage
✔ Help ensure reimbursements remain tax-efficient and compliant with HMRC guidance
If your business operates company vehicles, now is the time to review your mileage reimbursement rates and payroll processes to ensure they reflect the latest HMRC figures.
Need help understanding how the changes affect your business? Get in touch with our team.
Read the official guidance here:
https://www.gov.uk/guidance/advisory-fuel-rates