Advisory Fuel Rates March 2025

As of March 2025, HMRC has updated its advisory fuel rates (AFRs) for company car users. These rates, which apply to employees reimbursed for business mileage in company cars, are reviewed quarterly and are based on fuel price fluctuations.

These rates are effective from 1st March 2025 and can be used for expense claims or employer reimbursements. Employers can choose to use lower rates if they can prove the actual cost of fuel is lower.

HMRC advise:

These rates only apply to employees using a company car.

Use the rates when you either:

• reimburse employees for business travel in their company cars

• need employees to repay the cost of fuel used for private travel

You must not use these rates in any other circumstances.

HMRC Advisory Fuel Rates for Petrol, LPG & Hybrid

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	12 pence	11 pence
1401cc to 2000cc	15 pence	13 pence
Over 2000cc	23 pence	21 pence

Hybrid cars should be treated as petrol or diesel for the purposes of these rates.

HMRC Advisory Fuel Rates for Diesel & Electric Cars

Engine size	Diesel — rate per mile
1600cc or less	12 pence
1601cc to 2000cc	13 pence
Over 2000cc	17 pence

The fully electric car advisory rate remains at 7 pence per mile.

AFRs will be reviewed quarterly.

Source: Gov.uk

Information provided in this news article may be subject to change.