SEPTEMBER 2026 – UNITED KINGDOM
COMPANY CAR ADVISORY FUEL RATES
It is important that employers note the following:
Company car advisory fuel rates from 1 September 2026
The United Kingdom (UK) Government, through HM Revenue & Customs (HMRC), has announced revised advisory fuel rates for company cars, effective from 1 September to 30 November 2026.
The rates are reviewed quarterly on 1 March, 1 June, 1 September and 1 December. HMRC calculates the rates using a range of market and industry data, including vehicle fuel efficiency, fuel and electricity prices, and fleet sales information.
For fully electric company cars, the rate is 7p per mile for home charging and 15p per mile for public charging. Hybrid vehicles must use the applicable petrol or diesel rate.
Compared with the rates effective from 1 June 2026:
- Petrol vehicles over 2,000cc increase from 26p to 27p.
- LPG vehicles over 2,000cc decrease from 21p to 20p.
- Diesel vehicles between 1,601cc and 2,000cc decrease from 17p to 16p.
- Diesel vehicles over 2,000cc decrease from 23p to 22p.
- All other rates remain unchanged.
Employer impact:
- Private sector employers may use these rates to reimburse employees for business travel in company cars or to calculate repayments for private fuel.
- Employers may continue using the previous rates until 30 September 2026.
- Payments above HMRC’s rates may create taxable earnings and National Insurance obligations unless the employer can substantiate a higher fuel cost per mile.
For more details, follow the link.
