Advisory fuel rates

We use some essential cookies to make this website work. We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. We also use cookies set by other sites to help us deliver content from their services. You have accepted additional cookies. You can change your cookie settings at any time. You have rejected additional cookies. You can change your cookie settings at any time. Find out about advisory fuel rates for company car users, when you can use them, and how they're calculated. Get emails about this page Print this page When you can use the mileage rates These rates only apply to employees using a company car. Use the rates when you either: You must not use these rates in any other circumstances. 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. There will be no fuel benefit charge if you correctly record all private travel mileage and use the correct rate (or higher), to work out how much your employees must repay you for fuel used for private travel. You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate. HMRC reviews rates quarterly on: The mean miles per gallon ( MPG ) is taken from manufacturers’ information, taking into account annual sales to businesses (Fleet Audits for the last 3 years). For liquefied petroleum gas ( LPG ), the MPG used is 20% lower than for petrol due to lower volumetric energy density. The ‘rates per mile’ calculated in these tables are shown rounded to one decimal place, but the final advisory fuel rates are rounded to the nearest whole penny. Rates per mile which end in 0.5 are rounded down to the nearest whole penny for the advisory fuel rate when the underlying unrounded figure ends in a number less than 0.5 (for example 0.487). When the underlying unrounded figure ends in a number greater than 0.5 (for example 0.513) it is rounded up to the nearest whole penny. The latest petrol and diesel prices are taken from the Department for Energy Security and Net Zero ( DESNZ ) and the LPG (UK average) is from the Automobile Association website. The advisory electric rate for fully electric cars is calculated using electrical price data from: The Department for Energy Security and Net Zero annually published ‘pence per kilowatt hour’ cost is uprated by the quarterly Office for National Statistics’ Consumer Prices Index for electricity to account for quarterly price variations. The value of the annual equivalent rate is then calculated by taking the cost of electricity per mile for each model provided by the Department for Transport and electricity price data from Department for Energy Security and Net Zero and Office for National Statistics. Based on company car sales data across the last 3 years, a weighted average value of the electrical costs per mile for a fully electric car is then calculated. The public charging advisory electric rate for fully electric cars is calculated using additional public charging price data from the Zapmap Price Index. The method for calculating a public charging advisory electric rate is the same as the home charging advisory electric rate. The only change is the underlying price of electricity (in pence per kilowatt-hour), which is updated to reflect the average price of public charging using