On 23 February 2026, HMRC advised the following rates that apply for the quarter from 01 March 2026:
1. The Advisory Electricity Rates, and
2. The Advisory Fuel Rates
All rates are reviewed every three months.
Both are payable to either reimburse employees for business travel in a company car or to calculate the amount an employee should repay where they are required to repay the cost of fuel used for private travel (in a company car).
Whilst these rates are effective 01 March 2026, employers can use the previous rates for up to one month, therefore, they must be in place by 01 April 2026.
Note these rates are advisory which means employers can pay at a higher rate if they can justify the costs per mile are higher. If they cannot, the excess is profit and subject to tax and Class 1 NICs.
The Advisory Electricity Rates (AER)
From 01 March 2026, the rates are set out below compared to the rates applicable for the quarter starting 01 December 2025 with an asterisk denoting whether these have changed:
|
Advisory Electricity Rate
|
Date
|
Charging type
|
Rate
|
|
Fully electric company cars
|
From 01/12/25
|
Home
|
7p
|
|
Public
|
14p
|
|
From 01/03/26
|
Home
|
7p
|
|
Public
|
15p*
|
The Advisory Fuel Rates (AFRs)
The rates from 01 March 2026 are shown below compared to the rates applying from 01 December 2025 with an asterisk denoting whether these have changed:
|
Fuel
|
Date
|
Engine Size
|
|
1400cc or less
|
1401 to 2000cc
|
Over 2000cc
|
|
Petrol / petrol-hybrid
|
From 01/12/25
|
12p
|
14p
|
22p
|
|
From 01/03/26
|
12p
|
14p
|
22p
|
|
LPG
|
From 01/12/25
|
11p
|
13p
|
21p
|
|
From 01/03/26
|
10p*
|
12p*
|
19p*
|
|
|
Date
|
Engine Size
|
|
1600cc or less
|
1601 to 2000cc
|
Over 2000cc
|
|
Diesel
|
From 01/12/25
|
12p
|
13p
|
18p
|
|
From 01/03/26
|
12p
|
13p
|
18p
|
For Bookkeepers
Up to 31 August 2025, the Advisory Electricity Rate for fully electric cars was a single rate of 7p per mile, reviewed quarterly. From 01 September 2025, the rate was split to make a differential between the advisory rate for home charging and that for public charging. To enable employers to use the correct rate, it is necessary to establish where the charging took place. HMRC’s guidance reflects this and says:
For journeys where a company car is charged at both public and residential locations, you can apportion the mileage based on how much charging happens at each place. The apportionment calculation should be fair and reasonable.
