United Kingdom – HMRC: Advisory Fuel Rates (company cars) updated
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HMRC updated the Advisory Fuel Rates guidance on Aug 22, 2025. These rates are used for tax-free mileage reimbursements for company cars (and for employees repaying private fuel). Employers should apply the latest AFRs for expense processing.
Effective Date
- 1 September 2025
Published
- Aug 22, 2025
Impact
- Expense reimbursement thresholds for company-car fuel change; mis-applied rates can create taxable benefit or underpayment risk.
Payroll action
- Load the new AFRs into expense/payroll systems and communicate the applicable pence-per-mile rates to employees with company cars.