The following advisory fuel rates apply from 1 June 2026.
These rates are commonly used where employers reimburse employees for business mileage in company cars, or where employees repay the cost of private fuel. Previous rates are shown in brackets.
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 14p (12p) | 11p (10p) | |
| 1600cc or less | 15p (12p) | ||
| 1401cc to 2000cc | 17p (14p) | 13p (12p) | |
| 1601 to 2000cc | 17p (13p) | ||
| Over 2000cc | 26p (22p) | 23p (18p) | 21p (19p) |
The previous rates can continue to be used for up to one month from the date the new rates apply.
For hybrid cars, the appropriate petrol or diesel rate should be used.
For fully electric vehicles, the rate is:
- 7p per mile where the vehicle is charged at home
- 15p per mile where the vehicle is charged using public facilities
Employees using their own cars
For employees using their own cars for business journeys, the Advisory Mileage Allowance Payment rate increased on 6 April 2026 to:
- 55p per mile for the first 10,000 business miles
- 25p per mile thereafter
- Plus 5p per passenger, where applicable
For National Insurance purposes, employers can continue to reimburse at the 55p rate regardless of mileage, as the 10,000-mile threshold does not apply for NIC.
Input VAT on mileage claims
Where mileage payments are made, the fuel element is represented by the rates in the advisory fuel rate table above.
Employers may be able to reclaim input VAT on the fuel element, provided the claim is supported by a valid VAT invoice from the filling station.
For example, for a 1500cc diesel car, the fuel element is 15p per mile, so the VAT reclaim would be:
15p × 1/6 = 2.5p per mile
Please speak to us if you would like help checking that mileage claims, VAT recovery and staff reimbursements are being dealt with correctly.