Company Car Advisory Fuel Rate Calculator
Work out company car fuel reimbursement using HMRC's advisory fuel rates for the quarter your journeys fall in. The current period is from 1 september 2026.
Using 2026/27 UK tax rates
Used to select the published rate period.
The band is selected automatically from the engine size.
Fuel reimbursement
£85.00
- Petrol — 1401cc to 2000cc — 500 mi at 17p
- £85.00
- Rate period
- From 1 September 2026
- Total
- £85.00
Published HMRC advisory fuel rates for from 1 september 2026, last checked 7 September 2026.
Company car or own car?
Advisory fuel rates cover fuel in a company car. If the driver owns the vehicle, use the business mileage calculator instead — mixing the two gives the wrong answer and can create a tax problem.
What this means
Advisory fuel rates are the amounts HMRC accepts for company car fuel without creating a taxable benefit. An employer can reimburse business fuel up to this rate, and an employee can repay private fuel at this rate to avoid the car fuel benefit charge.
These rates apply to company cars only. If the vehicle belongs to the driver, the approved mileage rates apply instead, and they are much higher because they cover wear, insurance and depreciation as well as fuel. If your employer pays you less than the approved rate on your own vehicle, see Mileage Allowance Relief instead — that is a different regime again.
Quick answers
- What is the current advisory fuel rate period?
- The current published period is From 1 September 2026. HMRC reviews the rates quarterly, on 1 March, 1 June, 1 September and 1 December.
- Do advisory fuel rates apply to my own car?
- No. They apply only to company cars. A driver's own vehicle uses HMRC's approved mileage rates instead, which are considerably higher.
- Is there a separate rate for electric company cars?
- Yes — a pence-per-mile advisory electricity rate, split between home charging and public charging rates.
- Do these rates work out my Benefit in Kind?
- No. Advisory fuel rates are only about reimbursing fuel cost. Benefit in Kind on a company car depends on its list price and CO2 emissions and is calculated separately.
Reconcile fuel at each rate change
Advisory fuel rates change quarterly, so a reimbursement policy set once and left alone drifts away from the published rate.
Keep company car fuel and own-vehicle mileage as separate processes — they use different rates and different evidence.
You may also find useful
- HMRC Business Mileage CalculatorApproved mileage for your own car, van, motorcycle or bicycle at HMRC rates.
- Fuel Cost Per Mile CalculatorWhat fuel actually costs you per mile from your MPG and pump price.
- Employee Cost & Employer NI CalculatorThe full annual cost of hiring, including employer National Insurance and pension.
How we calculated it
The journey date selects the published rate period. Within that period the fuel type and engine size select the band, and the rate is multiplied by your business miles. For fully electric cars, miles are split between the home and public charging rates in the proportions you give, which must total 100%.
Assumptions
- All miles entered are business miles in a company car.
- The rate is chosen from the published period containing the journey date.
- Hybrid cars are treated as petrol or diesel, as HMRC directs.
- This tool does not calculate Benefit in Kind or company car tax.
How this calculator works
HMRC reviews advisory fuel rates quarterly. Rates apply from the date they take effect, though employers may use the previous rates for up to one month afterwards. The current effective period is From 1 September 2026. Every rate below is stored with the period it applies to and the date it was last checked.
From 1 September 2026
| Engine size | Petrol | LPG | Diesel |
|---|---|---|---|
| 1400cc or less | 14p | 11p | 15p (1600cc or less) |
| 1401cc to 2000cc | 17p | 13p | 16p (1601cc to 2000cc) |
| Over 2000cc | 27p | 20p | 22p (Over 2000cc) |
| Fully electric | 7p home charging, 15p public charging | ||
Source: GOV.UK — Advisory fuel rates (https://www.gov.uk/guidance/advisory-fuel-rates). Last checked 7 September 2026.
1 June 2026 to 31 August 2026
| Engine size | Petrol | LPG | Diesel |
|---|---|---|---|
| 1400cc or less | 14p | 11p | 15p (1600cc or less) |
| 1401cc to 2000cc | 17p | 13p | 17p (1601cc to 2000cc) |
| Over 2000cc | 26p | 21p | 23p (Over 2000cc) |
| Fully electric | 7p home charging, 15p public charging | ||
Source: GOV.UK — Advisory fuel rates (https://www.gov.uk/guidance/advisory-fuel-rates). Last checked 7 September 2026.
Worked examples
1,900cc diesel, current period
A director drives 500 business miles in a company diesel car with a 1,900cc engine during the from 1 september 2026 period. The 1601cc to 2000cc diesel rate is 16p per mile, so the company can reimburse 500 × 16p = £80 without a taxable benefit arising.
1,300cc petrol, current period
A sales rep drives 400 business miles in a 1,300cc petrol company car during the from 1 september 2026 period. The 1400cc-or-less petrol rate is 14p per mile, so the reimbursement is 400 × 14p = £56.
Fully electric, mixed charging
A fully electric company car covers 600 business miles in the current period, with 80% of charging at home and 20% at public chargers. That splits to 480 miles at 7p (£33.60) and 120 miles at 15p (£18.00), a total of £51.60.
Key terms explained
- Advisory Fuel Rate (AFR)
- A pence-per-mile rate, published quarterly by HMRC, that covers fuel cost in a company car by engine size and fuel type.
- Advisory electricity rate
- The AFR equivalent for fully electric company cars, expressed in pence per mile, currently split between home and public charging.
- Rate period
- The three-month window during which a given set of advisory fuel rates applies, starting on 1 March, 1 June, 1 September or 1 December.
Common mistakes
Using AMAP rates for a company car
The 55p/25p rates on the mileage calculator are for a driver's own vehicle. Applying them to a company car overstates the tax-free amount and can create an unexpected benefit charge.
Using the old rate after the grace period ends
Employers may keep using the previous quarter's rate for up to one month after a change, but not indefinitely. Check the effective date of the journey against the current published period.
Treating this as a Benefit in Kind calculation
Advisory fuel rates only cover reimbursing or repaying fuel cost. They say nothing about the separate company car Benefit in Kind charge, which this calculator does not attempt to work out.
Common questions
What are HMRC advisory fuel rates?
They are the rates HMRC accepts for reimbursing business fuel in a company car, or for an employee repaying the cost of private fuel, without a taxable benefit arising.
How often do the rates change?
HMRC reviews them quarterly, taking effect on 1 March, 1 June, 1 September and 1 December. Employers can use the previous rates for up to one month after a change.
What is the current rate period?
The rates currently in effect are for from 1 september 2026. Always check the effective date against the journey date, since the previous quarter's rates only remain usable for a short grace period after a change.
Are advisory fuel rates the same as the 55p mileage rate?
No. The 55p and 25p rates are Approved Mileage Allowance Payments for a driver's own vehicle. Advisory fuel rates are much lower because they cover fuel only in a company car.
What rate applies to an electric company car?
There is a separate advisory electricity rate, currently split between home charging and public charging. Enter how your charging divides between the two.
What about hybrid cars?
HMRC treats hybrid cars as either petrol or diesel for advisory fuel rate purposes, based on the fuel the engine uses.
Does this calculate company car tax?
No. Benefit in Kind and company car tax depend on the car's list price and CO2 emissions and are outside the scope of this calculator.
Can an employee choose to use advisory fuel rates instead of AMAP?
No. Which regime applies depends on who owns the vehicle, not personal choice. Company car drivers use advisory fuel rates; drivers of their own vehicle use approved mileage rates.
Sources
- Advisory fuel rates — HMRC
Last reviewed: 7 September 2026 · Statutory rates: 2026/27. This calculator is information only and is not tax, accounting or financial advice.