Aug 28, 2025 1 min read

United Kingdom – HMRC: Advisory Fuel Rates (company cars) updated

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

Published

Impact

  • Expense reimbursement thresholds for company-car fuel change; mis-applied rates can create taxable benefit or underpayment risk.

Payroll action

GOV.UK

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