HMRC Advisory Fuel Rates from 1 June 2025

HMRC have published their new Advisory Fuel Rates for company users of petrol and diesel cars, which have been slightly tweaked, while electric rates are unchanged

The advisory fuel rates that apply from 1 June 2025 have been adjusted for petrol vehicles of 1401cc to 2000cc with a 1p decrease, engine sizes over 2000cc decrease by 1p, the rate for petrol cars up to 1400cc remains unchanged, while diesel engines up to 1600cc also decrease by 1p per mile, with other engine sizes at the same rate. The electric mileage rate remains unchanged.

The previous rates, effective from March 2025, can be used for up to one month from the date the new rates apply.

The rates only apply in the following circumstances:

• reimburse employees for business travel in their company cars; or
• require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

From 1 June 2025 the advisory electricity rate for fully electric cars remains unchanged at 7p. In line with advisory fuel rates, this electric rate is now being reviewed quarterly and has been included in the tables below.

From 1 June 2025

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

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

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