Updated Advisory Rates from 01 September 2026

On 21 August 2026, HMRC advised the Advisory Electricity and Advisory Fuel Rates that apply for the quarter from 01 September 2026. Both apply in respect of travel in a company car.

On 21 August 2026, HMRC advised the following rates for the quarter from 01 September 2026:

1.     The Advisory Electricity Rates, and

2.     The Advisory Fuel Rates

All rates are reviewed every three months and are used 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.  They 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 September 2026, the rates are set out below compared to the rates applicable for the quarter starting 01 June 2026.  HMRC do not regard electricity as a fuel: 

The Advisory Fuel Rates (AFRs) 

The rates from 01 September 2026 are shown below compared to the rates applying from 01 June 2026 with an asterisk denoting whether these have changed:

For Bookkeepers

Whilst these rates are effective 01 September 2026, employers can use the previous rates for up to one month, therefore, they must be in place by 01 October 2026. 

See HMRC’s guidance on applying the Advisory Electricity Rate where, in the same calculation, some charging is at home and some uses the public charging rate.  This 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.