New HMRC mileage rates are live – check reimbursement settings now

New HMRC Advisory Fuel Rates took effect on 1 September, meaning fleets should check payroll, expenses, and reimbursement systems immediately.

For petrol company cars over 2000cc, the rate has increased to 27p per mile. Diesel rates have fallen to 16p per mile for 1601–2000cc cars and 22p for engines above 2000cc.

The Advisory Electric Rate remains 7p per mile for home charging and 15p for public charging.

For fleet managers, the priority is making sure drivers are reimbursed against the correct rate and that systems distinguish between home and public EV charging where necessary.

HMRC also allows employers to use a higher rate where they can demonstrate that the actual cost per mile is greater, which can be relevant for drivers relying heavily on rapid charging.

The immediate action is to update reimbursement settings, communicate the changes and check that EV charging data is accurate enough to support fair payments.

Small rate changes can become significant across a large, high-mileage fleet.

If you are driving your own personal car for work in the UK, you do not use Advisory Fuel Rates (AFRs). Instead, you use HMRC’s Approved Mileage Allowance Payments (AMAP).

AMAP rates for personal cars

  • First 10,000 business miles in the tax year: 55p per mile
  • Each business mile over 10,000: 25p per mile
  • Passenger supplement: An extra 5p per mile for each fellow employee you carry on work journeys.

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