When you can use the mileage rates

These rates only apply to employees using a company car.

Use the rates when you either:

• reimburse employees for business travel in their company cars
• need employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

Reimburse employees for company car business travel

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.

Employees to repay the cost of fuel used for private travel

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.

How rates are calculated

HMRC reviews rates quarterly on:

• 1 March
• 1 June
• 1 September
• 1 December

The mean miles per gallon (MPG) is taken from manufacturers’ information, taking into account annual sales to businesses (Fleet Audits average 2021 to 2023).

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:

• Department for Energy Security and Net Zero
• Office for National Statistics (ONS)
• car electrical consumption rates from the Department for Transport (DfT)
• annual car sales volumes to businesses (Fleet Audits average for the last 3 years)

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 advisory fuel rates are worked out from the fuel prices in these tables.

Petrol

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	51.0	134.4138.7 pence	611.0630.7 pence	12.012.4 pence	12 pence
1401 to 2000	42.3	134.4138.7 pence	611.0630.7 pence	14.414.9 pence	1415 pence
Over 2000	27.1	134.4138.7 pence	611.0630.7 pence	22.623.3 pence	23 pence

Diesel

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1600	56.9	139.8146.1 pence	635.7664.3 pence	11.211.7 pence	1112 pence
1601 to 2000	49.3	139.8146.1 pence	635.7664.3 pence	12.913.5 pence	13 pence
Over 2000	38.0	139.8146.1 pence	635.7664.3 pence	16.717.5 pence	17 pence

LPG

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	40.8	98.3 pence	446.9 pence	10.9 pence	11 pence
1401 to 2000	33.8	98.3 pence	446.9 pence	13.2 pence	13 pence
Over 2000	21.7	98.3 pence	446.9 pence	20.6 pence	21 pence

Electric

From 1 DecemberMarch 2024,2025, the advisory electric rate for fully electric cars will be 7 pence per mile.

Electrical efficiency — miles per kilowatt-hour	Domestic electricity cost (per kilowatt-hour)	Rate per mile	Advisory electric rate
3.57	26.1425.24 pence	7.317.06 pence	7 pence

The ‘Domestic electricity cost per kilowatt-hour’ is the Department for Energy Security and Net Zero annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.

Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

The advisory fuel rates for petrol, LPG and diesel cars are shown in the following tables.

You can use the previous rates for up to 1 month from the date any new rates apply.

From 1 DecemberMarch 20242025

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	12 pence	11 pence
1401cc to 2000cc	1415 pence	13 pence
Over 2000cc	23 pence	21 pence

Engine size	Diesel — rate per mile
1600cc or less	1112 pence
1601cc to 2000cc	13 pence
Over 2000cc	17 pence

Electric — rate per mile
7 pence

From 1 SeptemberDecember 2024 to 3028 NovemberFebruary 20242025

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1312 pence	11 pence
1401cc to 2000cc	1514 pence	13 pence
Over 2000cc	2423 pence	21 pence

Engine size	Diesel — rate per mile
1600cc or less	1211 pence
1601cc to 2000cc	1413 pence
Over 2000cc	1817 pence

Electric — rate per mile
7 pence

From 1 JuneSeptember 2024 to 3130 AugustNovember 2024

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1413 pence	11 pence
1401cc to 2000cc	1615 pence	13 pence
Over 2000cc	2624 pence	21 pence

Engine size	Diesel — rate per mile
1600cc or less	1312 pence
1601cc to 2000cc	1514 pence
Over 2000cc	2018 pence

Electric — rate per mile
87 pence

From 1 MarchJune 2024 to 31 MayAugust 2024

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1314 pence	11 pence
1401cc to 2000cc	1516 pence	13 pence
Over 2000cc	2426 pence	21 pence

Engine size	Diesel — rate per mile
1600cc or less	1213 pence
1601cc to 2000cc	1415 pence
Over 2000cc	1920 pence

Electric — rate per mile
98 pence

From 1 DecemberMarch 20232024 to 2931 FebruaryMay 2024

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1413 pence	1011 pence
1401cc to 2000cc	1615 pence	1213 pence
Over 2000cc	2624 pence	1821 pence

Engine size	Diesel — rate per mile
1600cc or less	1312 pence
1601cc to 2000cc	1514 pence
Over 2000cc	2019 pence

Electric — rate per mile
9 pence

From 1 SeptemberDecember 2023 to 3029 NovemberFebruary 20232024

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1314 pence	10 pence
1401cc to 2000cc	16 pence	12 pence
Over 2000cc	2526 pence	1918 pence

Engine size	Diesel — rate per mile
1600cc or less	1213 pence
1601cc to 2000cc	1415 pence
Over 2000cc	1920 pence

Electric — rate per mile
109 pence

From 1 JuneSeptember 2023 to 3130 AugustNovember 2023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	10 pence
1401cc to 2000cc	1516 pence	12 pence
Over 2000cc	2325 pence	1819 pence

Engine size	Diesel — rate per mile
1600cc or less	12 pence
1601cc to 2000cc	14 pence
Over 2000cc	1819 pence

Electric — rate per mile
910 pence

From 1 MarchJune 2023 to 31 MayAugust 2023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	10 pence
1401cc to 2000cc	15 pence	1112 pence
Over 2000cc	23 pence	1718 pence

Engine size	Diesel — rate per mile
1600cc or less	1312 pence
1601cc to 2000cc	1514 pence
Over 2000cc	2018 pence

Electric — rate per mile
9 pence

From 1 DecemberMarch 20222023 to 2831 FebruaryMay 2023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	1413 pence	10 pence
1401cc to 2000cc	1715 pence	1211 pence
Over 2000cc	2623 pence	1817 pence

Engine size	Diesel — rate per mile
1600cc or less	1413 pence
1601cc to 2000cc	1715 pence
Over 2000cc	2220 pence

Electric — rate per mile
89 pence

Find rates from an earlier date.