HMRC has confirmed a 26p per mile rule for drivers that takes effect from Monday morning. The tax authority has released updated fuel advisory rates for petrol, diesel, and electric vehicle (EV) motorists on Monday, June 1, following a quarterly review.
These rates apply exclusively to employees using a company car. HMRC reviews the rates quarterly on March 1, June 1, September 1, and December 1. The rates per mile calculated in these tables are shown rounded to one decimal place, but the final advisory fuel rates are rounded to the nearest whole penny.
Rates per mile that end in 0.5 are rounded down to the nearest whole penny for the advisory fuel rate when the underlying unrounded figure ends in a number less than 0.5 (for example 0.487). Conversely, when the underlying unrounded figure ends in a number greater than 0.5 (for example 0.513), it is rounded up to the nearest whole penny.
The latest petrol and diesel prices are sourced from the Department for Energy Security and Net Zero (DESNZ), while LPG prices (UK average) are from the Automobile Association website.
New Fuel Advisory Rates from June 1
From June 1, motorists with petrol tanks sized 1400cc or less face a 14p per mile rate, while LPG drivers in the same category face an 11p per mile rate. Drivers with petrol tanks between 1401cc and 2000cc have a 17p per mile rate, with LPGs of the same size on a 13p per mile rate.
For petrol and LPG tanks above 2000cc, the rates increase to 26p and 21p per mile, respectively.
Diesel rates are similar, with 15p per mile, 17p per mile, and 23p per mile rates set for tanks sized 1600cc or less, 1601cc to 2000cc, and over 2000cc, respectively.
Electric chargepoint rates for home chargers are 7p per mile, but this rises to 15p per mile for public chargepoints.
