The mileage rates for petrol, diesel, hybrid and electric cars

If you’re driving for business, HMRC has a rigid set of rates for claiming fuel and other expenses - here’s what you need to know

It's vital to closely watch mileage rates. Here's why.

*What are the mileage rates for company cars and vans?*

Drivers using company-owned vehicles are reimbursed using advisory fuel rates (AFRs). These are HMRC-approved per-mile rates which are adjusted every quarter and can also be used by employers to recoup the cost of private journeys if drivers are using a fuel card. 

*Autocar's company car tax calculator shows exactly what you'll pay for every make and model*

HMRC publishes nine AFRs, with different rates for petrol, diesel and LPG-fuelled vehicles based on their engine capacity. These are calculated using an average fuel efficiency figure for vehicles registered to fleets and current forecourt prices across the UK, and that figure is rounded to the nearest whole penny.

Petrol cars and vans:

Engine size Average Efficiency Cost per mile AFR
Up to 1,400cc 51.9mpg 13.0p 13p
1,401-2,000cc  44.1mpg 15.3p 15p
Over 2,000cc 28.8mpg 23.4p 23p

Diesel cars and vans:

ENGINE SIZE AVERAGE EFFICIENCY COST PER MILE AFR
Up to 1,600cc 60.7mpg 12.7p 13p
1,601-2,000cc 49.8mpg 15.5p 15p
Over 2,000cc 38.8mpg 19.9p 20p

LPG cars and vans:

ENGINE SIZE AVERAGE EFFICIENCY COST PER MILE AFR
Up to 1,400cc 41.5mpg 9.5p 10p
1,401-2,000cc 35.3mpg 11.2p 11p
Over 2,000cc 23.0mpg 17.2p 17p

*How do mileage rates work for electric and hybrid cars?*

Electricity is taxed differently to other fuels, and HMRC has a much simpler system for reimbursing electric vehicle drivers. The Advisory Electric Rate (AER) is currently 9p per mile for all electric vehicles, regardless of their size or efficiency. It’s based on an average efficiency figure for all fleet-owned vehicles and the cost of home charging and, following a year of rising energy prices, it’s now adjusted every quarter.

There are no mileage rates for hybrids, whether they’re ‘self-charging’ or plug-ins. Instead, HMRC advises fleets to reimburse drivers using the AFR system, using their engine size and fuel type.

*What if the mileage rates don't cover real-world costs*

HMRC will allow fleets to adjust the mileage rates if they are either leaving drivers out of pocket or actual travel costs are much lower, for example, if a plug-in hybrid is being charged regularly. However, they have to prove that the rates they are using are accurate, and any excess can be taxed as additional income or profit. 

Employers also don’t have to use AFRs if they can prove that employees pay them back for the full cost of private journeys instead of calculating it based on mileage. 

*Which mileage rates can I claim for using my own car?*

HMRC issues more generous mileage rates for drivers who use their own car or van, as these cover the cost of wear and tear as well as the fuel used. Approved Mileage Allowance Payments (AMAPs) haven’t changed since 2012, and they’re set at 45p per mile for the first 10,000 miles and 25p per mile afterwards. 

There’s an additional 5p per mile available for business journeys with a passenger on board, which helps to incentivise some green-minded carpooling.