New company car advisory fuel rates have been published and took effect from 1 March 2025.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 March 2025 are:

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Petrol

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LPG

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Diesel

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HMRC guidance statesthat the rates only apply when you either:

•        reimburse employees forbusiness travel in their company cars

•        require employees to repay thecost of fuel used for private travel.

You must not use these rates in anyother circumstances.

The Advisory Electricity Rate for fullyelectric cars is 7p per mile.

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK