HMRC Advisory Fuel Rates update – 1st September 2025

HMRC has released its latest advisory fuel rates for company cars. While petrol, diesel, and LPG rates remain unchanged, there’s a key update for electric vehicles:

Previously, all electric cars used a single 7p per mile rate, so this change reflects the differing costs of home versus public charging. Hybrid vehicles continue to follow petrol or diesel rates.

Current Rates for Petrol, Diesel, and LPG remain unchanged at:

Businesses should ensure reimbursement policies are updated to reflect the new EV rates and maintain compliance with HMRC guidance.

If you need help updating your company car policies or calculating mileage reimbursements? Ask Verallo today and our specialists can guide you. Contact us here.