HMRC mileage rates and advisory fuel rates
HMRC's 55p mileage rate for your own car, its fuel rates for company cars, and whether they cover what fuel costs at the pump.
By Forecourt Prices Published Updated
The short answer
a mile for the first 10,000 business miles, then 25p
a mile in a company car, from 1 September 2026
a mile in a company car, from 1 September 2026
HMRC reviews the fuel rates every quarter
Is it still 45p a mile? No.
HMRC's approved mileage rate for your own car or van is 55p a mile from 6 April 2026. After 10,000 business miles in the tax year, it is 25p[1].
HMRC's current advisory fuel rates for company cars apply from 1 September 2026. They run from 14p to 27p a mile for petrol and 15p to 22p for diesel[2].
Our latest UK averages are 171.7p a litre for petrol (E10) and 198.4p for diesel (B7). At HMRC's own mpg, the fuel rate falls short of that fuel cost in all six engine bands, by 1.2p to 2.6p a mile.
UK averages across 6,893 forecourts for petrol and 6,341 for diesel, from our price data. We update it every 15 minutes.
Most of the prices behind both averages are more than 3 days old.
Updated 6:47am on 2 November.
Mileage rates for your own car
From the 2026 to 2027 tax year, these are HMRC's approved mileage rates for a business mile in your own vehicle[1].
| Vehicle | First 10,000 miles | After 10,000 miles |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
Before that, from April 2011 to April 2026, cars and vans were 45p a mile, then 25p. Motorcycles and bicycles were the same as now[1].
An employer can also pay 5p a passenger a business mile, tax-free, for carrying a fellow employee on a work journey[1].
The approved mileage rate is what an employer can pay you tax-free when you use your own vehicle for work[3].
The government said the new rates "aim to ensure they better reflect the average costs of motoring"[5].
At the latest prices, a mile of petrol costs 17.5p at 171.7p a litre and 44.6 mpg. That is 32% of 55p. A mile of diesel costs 18.6p at 198.4p and 48.4 mpg, or 34%.
UK averages across 6,893 forecourts for petrol and 6,341 for diesel, from our price data. We update it every 15 minutes.
Take 12,000 business miles in your own car. The first 10,000 at 55p come to £5,500. The other 2,000 at 25p come to £500. That makes £6,000 your employer can pay tax-free.
HMRC's policy paper says: "The AMAP rate is advisory, and employers can choose to reimburse more or less"[5].
Paid less than the rate, an employee "can claim tax relief from HMRC by applying for Mileage Allowance Relief (MAR) on the difference"[5].
Paid more, they pay Income Tax on the difference[5].
Rachel Reeves, then Chancellor, announced the rise to Parliament on 21 May 2026[4].
She called it "a 10p per mile increase in tax free mileage rates, backdated to April 2026"[4].
HMRC's policy paper says: "The increase is retrospective taking effect from 6 April 2026."[5]
The Taxation (Energy and Vehicles) Act 2026 put 55p in place of 45p. It has "effect for the tax year 2026-27 and subsequent tax years"[6].
In June 2026 the government said it had "already committed to a review of these rates beyond 2026 to 2027"[5].
It said it would set that out at the Budget 2026[5].
Advisory fuel rates for company cars
These are HMRC's advisory fuel rates from 1 September 2026, for a business mile in a company car[2].
| Fuel | Engine size | Rate a mile |
|---|---|---|
| Petrol | 1400cc or less | 14p |
| Petrol | 1401cc to 2000cc | 17p |
| Petrol | Over 2000cc | 27p |
| Diesel | 1600cc or less | 15p |
| Diesel | 1601cc to 2000cc | 16p |
| Diesel | Over 2000cc | 22p |
| LPG | 1400cc or less | 11p |
| LPG | 1401cc to 2000cc | 13p |
| LPG | Over 2000cc | 20p |
| Electric | Home charger | 7p |
| Electric | Public charger | 15p |
HMRC says: "These rates only apply to employees using a company car"[2].
Employers use them to pay back business travel in a company car, or to work out what an employee repays for private fuel[2].
HMRC adds: "You must not use these rates in any other circumstances"[2].
"Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates," HMRC says[2].
HMRC reviews the rates every quarter, on 1 March, 1 June, 1 September and 1 December[2]. The next review date is 1 December 2026.
HMRC says: "You can use the previous rates for up to 1 month from the date any new rates apply"[2].
On 1 September 2026, four rates changed from the quarter before:
- Petrol, over 2000cc: up 1p, to 27p.
- Diesel, 1601cc to 2000cc: down 1p, to 16p.
- Diesel, over 2000cc: down 1p, to 22p.
- LPG, over 2000cc: down 1p, to 20p.
An employer that pays no more than the rate has no taxable profit and no Class 1A National Insurance to pay, HMRC says[2].
If its cars are more fuel efficient, or business travel costs more, it can use its own rates[2].
Paying more without showing a higher fuel cost a mile makes the excess taxable profit, and earnings for Class 1 National Insurance[2].
Do the fuel rates cover what fuel costs?
Our latest UK averages are 171.7p a litre for petrol (E10) and 198.4p for diesel (B7). At HMRC's own mpg, the fuel rate falls short of that fuel cost in all six engine bands, by 1.2p to 2.6p a mile.
HMRC's petrol rates assume 159.9p a litre[2]. Our UK average for petrol (E10) is 171.7p.
| Petrol engine | HMRC's mpg | Fuel a mile, our average | HMRC's rate | The rate is | Break-even price |
|---|---|---|---|---|---|
| 1400cc or less | 50.7 | 15.4p | 14p | 1.4p short | 156.1p |
| 1401cc to 2000cc | 42.8 | 18.2p | 17p | 1.2p short | 160.0p |
| Over 2000cc | 27.2 | 28.7p | 27p | 1.7p short | 161.5p |
HMRC's diesel rates assume 179.2p a litre[2]. Our UK average for diesel (B7) is 198.4p.
| Diesel engine | HMRC's mpg | Fuel a mile, our average | HMRC's rate | The rate is | Break-even price |
|---|---|---|---|---|---|
| 1600cc or less | 55.7 | 16.2p | 15p | 1.2p short | 183.8p |
| 1601cc to 2000cc | 49.6 | 18.2p | 16p | 2.2p short | 174.6p |
| Over 2000cc | 36.6 | 24.6p | 22p | 2.6p short | 177.1p |
Our cost a mile is our price a litre times 4.54609 litres a gallon[7], divided by HMRC's mpg for the band.
The break-even price is the pump price at which the rate just pays for the fuel, at HMRC's mpg.
UK averages across 6,893 forecourts for petrol and 6,341 for diesel, from our price data. We update it every 15 minutes.
Updated 6:47am on 2 November.
Over 10,000 business miles in a 1401cc to 2000cc petrol car, fuel at our average costs £1,820 at HMRC's 42.8 mpg. The rate pays £1,700. That leaves £120 of the fuel not covered.
In a 1401cc to 2000cc petrol car at HMRC's 42.8 mpg, a mile costs from 17.4p in Northern Ireland to 18.4p in the South East. The rate is 17p.
Regional averages from our price data, across every forecourt in each region.
| Region | Petrol | Petrol a mile at 42.8 mpg | Against 17p | Diesel | Diesel a mile at 49.6 mpg | Against 16p |
|---|---|---|---|---|---|---|
| Northern Ireland, mostly from older prices | 164.2p | 17.4p | about the same | 190.9p | 17.5p | 1.5p short |
| North East, mostly from older prices | 170.1p | 18.1p | 1.1p short | 198.1p | 18.2p | 2.2p short |
| Yorkshire, mostly from older prices | 170.6p | 18.1p | 1.1p short | 197.9p | 18.1p | 2.1p short |
| Wales, mostly from older prices | 171.4p | 18.2p | 1.2p short | 198.0p | 18.1p | 2.1p short |
| East Midlands, mostly from older prices | 172.6p | 18.3p | 1.3p short | 198.8p | 18.2p | 2.2p short |
| East of England, mostly from older prices | 172.4p | 18.3p | 1.3p short | 198.9p | 18.2p | 2.2p short |
| London, mostly from older prices | 171.9p | 18.3p | 1.3p short | 199.7p | 18.3p | 2.3p short |
| North West, mostly from older prices | 172.1p | 18.3p | 1.3p short | 198.1p | 18.2p | 2.2p short |
| Scotland, mostly from older prices | 172.6p | 18.3p | 1.3p short | 200.0p | 18.3p | 2.3p short |
| South West, mostly from older prices | 172.4p | 18.3p | 1.3p short | 199.5p | 18.3p | 2.3p short |
| West Midlands, mostly from older prices | 172.7p | 18.3p | 1.3p short | 199.3p | 18.3p | 2.3p short |
| South East, mostly from older prices | 173.5p | 18.4p | 1.4p short | 200.1p | 18.3p | 2.3p short |
Figures marked † are mostly from prices over 3 days old.
Regional averages updated 6:47am on 2 November.
Work out what a mile costs in your own car, with its own mpg and the latest prices.
How HMRC works the rates out
HMRC works each rate out from a car's fuel economy and a fuel price, and sets out its method on the same page[2].
"The mean miles per gallon (MPG) is taken from manufacturers' information, taking into account annual sales to businesses (Fleet Audits for the last 3 years)"[2].
So the mpg is the makers' figure for each car, not one measured on the road.
"For liquefied petroleum gas (LPG), the MPG used is 20% lower than for petrol due to lower volumetric energy density"[2].
For the price, HMRC says: "The latest petrol and diesel prices are taken from the Department for Energy Security and Net Zero (DESNZ)"[2].
The LPG price "(UK average) is from the Automobile Association website"[2].
For public charging, HMRC uses "the Zapmap Price Index"[2].
For a 1401cc to 2000cc petrol car, HMRC used 159.9p a litre, or 726.9p a gallon. At 42.8 mpg that gives 17.0p a mile, published as 17p[2].
HMRC added these rates to GOV.UK on 21 August 2026, before they applied on 1 September 2026[2].
The rates then stay the same for the quarter, while pump prices move.
So when prices rise after HMRC sets a rate, the rate falls behind. When they fall, it runs ahead.
On 1 September 2026, the day these rates began, our UK averages were 162.1p for petrol and 183.7p for diesel.
HMRC's rates use 159.9p and 179.2p[2].
Electric company cars
HMRC's electric rates from 1 September 2026 are 7p a mile on a home charger and 15p on a public charger[2].
HMRC has set a separate public charger rate since 1 September 2025[2].
HMRC assumes 3.59 miles per kWh, weighted by car sales[2].
It prices home charging at 24.47p per kWh, which gives 6.81p a mile[2].
It prices public charging at 54.00p per kWh, or 15.02p a mile[2].
We don't hold electricity prices, so this section gives HMRC's figures only.
How the rates have changed
HMRC's rates in pence a mile, smallest engine first, with our UK petrol (E10) and diesel (B7) averages on the day each set began[2].
| From | Petrol | Diesel | LPG | Electric | Our petrol | Our diesel |
|---|---|---|---|---|---|---|
| 1 Sep 2026 | 14 / 17 / 27 | 15 / 16 / 22 | 11 / 13 / 20 | 7 / 15 | 162.1p | 183.7p |
| 1 Jun 2026 | 14 / 17 / 26 | 15 / 17 / 23 | 11 / 13 / 21 | 7 / 15 | 158.9p | 182.9p |
| 1 Mar 2026 | 12 / 14 / 22 | 12 / 13 / 18 | 10 / 12 / 19 | 7 / 15 | 133.1p | 142.7p |
| 1 Dec 2025 | 12 / 14 / 22 | 12 / 13 / 18 | 11 / 13 / 21 | 7 / 14 | no figure | no figure |
| 1 Sep 2025 | 12 / 14 / 22 | 12 / 13 / 18 | 11 / 13 / 21 | 8 / 14 | no figure | no figure |
| 1 Jun 2025 | 12 / 14 / 22 | 11 / 13 / 17 | 11 / 13 / 21 | 7 | no figure | no figure |
| 1 Mar 2025 | 12 / 15 / 23 | 12 / 13 / 17 | 11 / 13 / 21 | 7 | no figure | no figure |
| 1 Dec 2024 | 12 / 14 / 23 | 11 / 13 / 17 | 11 / 13 / 21 | 7 | no figure | no figure |
| 1 Sep 2024 | 13 / 15 / 24 | 12 / 14 / 18 | 11 / 13 / 21 | 7 | no figure | no figure |
Our daily UK averages start in early 2026, so the older rows show a dash.
HMRC says: "You can find rates from an earlier date on the National Archives website"[2].
Our averages are from our price data, for each whole day.
Private fuel and the fuel benefit charge
The advisory rate is also what an employee repays for private fuel in a company car[2].
There is no fuel benefit charge if they repay at the rate or more, HMRC says[2].
The employer must "correctly record all private travel mileage and use the correct rate (or higher)"[2].
For 2026 to 2027, the car fuel benefit multiplier is £29,200, up from £28,200 in 2025 to 2026[1].
The van fuel charge for 2026 to 2027 is £798[1].
Common questions about HMRC mileage rates
Is it still 45p a mile?
No. Since 6 April 2026, the approved mileage rate for a car or van is 55p a mile for the first 10,000 business miles, then 25p[1]. It was 45p from April 2011 to April 2026[1].
What are HMRC's advisory fuel rates now?
From 1 September 2026, HMRC's petrol rates are 14p, 17p and 27p a mile, by engine size[2]. Diesel is 15p, 16p and 22p, and LPG 11p, 13p and 20p. Electric cars get 7p a mile on a home charger and 15p on a public one.
Is there a minimum mileage rate an employer must pay?
No. HMRC's policy paper says: "The AMAP rate is advisory, and employers can choose to reimburse more or less"[5]. Paid less than the rate, you can claim Mileage Allowance Relief on the difference[5].
Can my employer pay more than the advisory fuel rate?
Yes, if its cars are more fuel efficient or business travel costs more[2]. Paying more without showing a higher fuel cost a mile makes the excess taxable[2]. Our latest UK averages are 171.7p a litre for petrol (E10) and 198.4p for diesel (B7). At HMRC's own mpg, the fuel rate falls short of that fuel cost in all six engine bands, by 1.2p to 2.6p a mile.
Do hybrids use the petrol or diesel rate?
HMRC says: "Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates"[2]. So a hybrid uses the petrol or diesel rate for its engine size.
Sources and method
- GOV.UK (HMRC): Travel, mileage and fuel rates and allowances, checked 16 October 2026.
- GOV.UK (HMRC): Advisory fuel rates, checked 16 October 2026.
- GOV.UK: Expenses and benefits, business travel mileage for employees' own vehicles, checked 16 October 2026.
- HM Treasury: Chancellor Rachel Reeves statement to Parliament, 21 May 2026, checked 16 October 2026.
- HMRC: Increasing mileage rates (policy paper), checked 16 October 2026.
- legislation.gov.uk: Taxation (Energy and Vehicles) Act 2026, section 2, checked 16 October 2026.
- legislation.gov.uk: Weights and Measures Act 1985, Schedule 1, checked 15 October 2026.
- GOV.UK: Simplified expenses if you're self-employed, vehicles, checked 16 October 2026.
Our figures: each UK and regional average covers every forecourt's latest price from the last 30 days. It leaves out prices far from what the rest of the UK charges. Every sum uses the legal gallon of 4.54609 litres. HMRC's rates and figures are HMRC's own. How we work out the figures