HMRC has issued fresh guidance for petrol, diesel and electric vehicle owners weeks after new costs were introduced.
HM Revenue and Customs (HMRC) unveils new advisory fuel rates (AFRs) four times a year, with the most recent update being introduced on September 1.
AFRs apply to employees using a company car if they need to be reimbursed for business travel or if they need to repay the cost of fuel used for private travel.
The September update saw new rates being introduced for electric vehicles, with the rate now being split between public and home charging.
Prior to the change, electric vehicles were charged a flat rate, with the new change setting levels at 8p per mile for home charging and 14ppm for public charging.
There had been concerns that businesses and drivers could be confused by the new rules, as HMRC did not provide any additional guidance, although this has now been added.
In the event that a company car is charged at both public and residential locations, businesses can “apportion the mileage based on how much charging happens at each place”.
HMRC states that the apportionment calculation should be both “fair and reasonable”.
New advisory fuel rates were introduced by HMRC at the start of September
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It adds: “A higher amount than the advisory rates can be used as long as you can show that the fuel cost per mile is higher.
“Therefore, if the public charger used is higher in cost per mile than the new advisory rate introduced for public charging, a higher rate can be used as long as you can show the cost per mile is higher.”
As with previous updates, hybrid cars are treated as either petrol or diesel cars for AFRs depending on their powertrain.
To help motorists adjust to the new advisory fuel rates, GB News has collated the latest costs, as of September 1, 2025.
Advisory fuel rates per mile from September 1, 2025
Petrol
Engines up to 1,400cc – Remains at 12 pence
Between 1,401cc and 2,000cc – Reduced to 14 pence
Over 2,000cc – Reduced to 22 pence
Diesel
Engines up to 1,600cc – Raised to 12 pence
Between 1,601cc and 2,000cc – Remains at 13 pence
Over 2,000cc – Raised to 18 pence
Liquefied Petroleum Gas (LPG)
Engines up to 1,400cc – Remains at 11 pence
Between 1,401cc and 2,000cc – Remains at 13 pence
Over 2,000cc – Remains at 21 pence
Electric
Home charger – 8 pence
Public charger – 14 pence