02/09/2026
📢 New HMRC Advisory Fuel Rates are now in effect
HMRC has published its latest Advisory Fuel Rates (AFRs), effective from 1 September 2026, for employees using company cars for business travel.
There are several changes from the previous rates:
⚡ Petrol over 2,000cc: increased from 26p to 27p per mile
⚡ Diesel 1,601–2,000cc: reduced from 17p to 16p per mile
⚡ Diesel over 2,000cc: reduced from 23p to 22p per mile
⚡ LPG over 2,000cc: reduced from 21p to 20p per mile
The new rates are used to:
✔️ Reimburse employees for business mileage in company cars
✔️ Calculate repayments where employers provide fuel for private mileage
✔️ Help keep mileage payments tax-efficient and compliant with HMRC guidance
If your business operates company vehicles, now is a good time to review your mileage reimbursement rates and payroll processes to ensure you’re using the latest figures.
For a full breakdown of the new rates and what they mean for employers, read our latest news here - https://armstrongs-accountancy.co.uk/news/2026/09/02/new-hmrc-advisory-fuel-rates-for-september-2026/