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HMRC Keeps Petrol and Diesel AFRs Unchanged, Cuts EV Home Rate to 7p From December 1

The move follows HMRC's split between home and public charging, increasing pressure on employers to document actual electricity costs.

Overview

  • New advisory fuel rates take effect on Monday, December 1, 2025, with petrol and diesel per‑mile bands unchanged from the previous quarter.
  • The electric home‑charging rate drops to 7p per mile, while the public‑charger rate stays at 14p.
  • Company‑car reimbursements and private‑fuel repayments must use these rates, which are not for other types of travel expenses.
  • HMRC states the methodology draws on DESNZ and ONS price data, Department for Transport EV consumption figures, and AA data for LPG.
  • Employers are told to evidence electricity spend and track business and private mileage, with apportionment required when charging at multiple locations; the next review is due March 1, 2026.