New HMRC Advisory Fuel Rates for September 2026.

HMRC has published its latest Advisory Fuel Rates (AFRs), effective from 1 September 2026.

The updated rates are important for employers and employees using company cars, particularly businesses managing mileage expenses and electric vehicles.

Here’s a quick guide to the September 2026 Advisory Fuel Rates, including what has changed and what employers need to know.

What are HMRC Advisory Fuel Rates?

Advisory Fuel Rates (AFRs) are mileage rates published by HMRC. Employers can use them to calculate fuel reimbursements for business journeys in company cars or to determine how much employees should repay for private mileage.

Using the HMRC rates can make company car fuel calculations simpler without having to calculate the actual fuel cost for every journey.

Advisory Fuel Rates September 2026

The new HMRC rates from 1 September 2026 are:

What has changed in September 2026?

There are several changes compared with the previous rates.

• The petrol rate for cars over 2,000cc has increased from 26p to 27p per mile.
• For diesel vehicles, the 1,601cc–2,000cc rate has decreased from 17p to 16p, while vehicles over 2,000cc have reduced from 23p to 22p.
• The LPG rate for vehicles over 2,000cc has also reduced, from 21p to 20p per mile.
• For electric cars, HMRC continues to distinguish between home charging and public charging, with rates of 7p and 15p per mile respectively.

Electric vehicle Advisory Fuel Rates

The separate rates for electric vehicles are particularly relevant to employers with company car fleets.

From September 2026:

• Home charging: 7p per mile
• Public charging: 15p per mile

Where an electric company car is charged in both locations, mileage can be apportioned between the two rates where the apportionment is fair and reasonable.

Employers may also be able to use a higher rate where they can demonstrate that the actual cost of public charging is higher than HMRC's advisory rate.

What should employers do?

Businesses using HMRC Advisory Fuel Rates should review their mileage and company car policies to ensure the new September 2026 rates are being used.

It's also worth checking:

• Payroll and expenses systems have been updated.
• Employees understand which rate applies to their vehicle.
• Electric vehicle policies cover home and public charging.
• Supporting evidence is retained if paying more than the advisory rate.

HMRC also allows employers to continue using the previous rates for up to one month after a new rate takes effect, giving businesses time to update their systems.

September 2026 Advisory Fuel Rates: Key takeaways

The HMRC Advisory Fuel Rates for September 2026 provide a simple way for employers to manage company car fuel expenses and mileage reimbursements.

The key rates are 14p–27p for petrol, 15p–22p for diesel, 11p–20p for LPG and 7p–15p for fully electric vehicles, depending on the vehicle and charging method.

If your business provides company cars or reimburses employees for business mileage, now is a good time to review your policies and make sure you're using the correct September 2026 Advisory Fuel Rates.

Rates are subject to HMRC guidance and should be checked before being applied to individual circumstances.