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HMRC Updates Company Car Fuel Rates, Splits EV Reimbursement by Charging Type

The update introduces split EV reimbursement with home charging at 8p per mile, with some reports now showing 14p for public charging after a correction.

Overview

  • The new advisory fuel rates took effect on 1 September 2025 for company cars as part of HMRC’s quarterly update.
  • For electric vehicles, HMRC introduced separate mileage rates: 8p per mile for home charging, with the public‑charging figure reported as 14p per mile by GB News and the Liverpool Echo after a correction, while Birmingham Live lists 12p.
  • Petrol rates remain at 12p/14p/22p by engine band, diesel moves to 12p/13p/18p, and LPG stays at 11p/13p/21p.
  • HMRC guidance applies to company cars for reimbursing business travel or accounting for private mileage, and employers may use different rates if actual costs vary.
  • HMRC cites Zapmap for public‑charging prices, DESNZ for petrol and diesel data, and the AA for LPG in its rate calculations.