Advisory Fuel Rate Calculator

What this calculator does

HMRC's advisory fuel rates (AFRs) are the official pence-per-mile figures used to reimburse employees for the fuel they use on business journeys in a company car — or for employees to repay their employer for private fuel. This calculator turns those static HMRC tables into a quick tool: choose your rate period, fuel type and engine size, enter your business miles, and it returns the exact tax-free reimbursement you can claim or pay.

It is built for company-car drivers, fleet managers, small-business owners and payroll teams who need a fast, accurate figure each quarter. HMRC reviews the rates four times a year — on 1 March, 1 June, 1 September and 1 December — so the table includes both the current quarter (from 1 June 2026) and the previous quarter (from 1 March 2026) in case you are reconciling an earlier claim. Fully electric company cars use the Advisory Electricity Rate (AER), with separate figures for home and public charging.

Important: advisory fuel rates apply only to company cars. If you drive your own car for work you instead use the higher HMRC mileage allowance (45p/25p per mile) — see our business mileage calculator for that.

How it works

1. Pick the rate period. Rates change quarterly; use the period that matches when the journeys were driven.
2. Choose the fuel type — petrol, diesel, LPG or fully electric.
3. Select the engine size band (or, for an electric car, whether it was charged at home or at a public charger).
4. Enter your business miles and press Calculate.

The calculation is simply: business miles × advisory rate (in pence) ÷ 100. Reimbursing at or below the advisory rate is free of Income Tax and National Insurance. If you pay more than the advisory rate and cannot show the actual cost per mile was higher, the excess is treated as taxable earnings.

Current advisory fuel rates from 1 June 2026 (pence per mile)

Engine size	Petrol	Diesel	LPG
1400cc or less (diesel: 1600cc or less)	14p	15p	11p
1401–2000cc (diesel: 1601–2000cc)	17p	17p	13p
Over 2000cc	26p	23p	21p

Fully electric company cars: 7p per mile for home charging and 15p per mile for public charging (Advisory Electricity Rate, from 1 June 2026).

Worked example

Sarah drives a diesel company car with a 2.0-litre (1,995cc) engine and clocks up 850 business miles in June 2026. The diesel rate for the 1601–2000cc band from 1 June 2026 is 17p per mile.

850 miles × 17p = 14,450p = £144.50

Sarah's employer can reimburse her £144.50 completely free of Income Tax and National Insurance. If the employer chose to pay 20p per mile (£170.00) without evidence that the real fuel cost was that high, the extra £25.50 would be taxable as earnings.

Frequently asked questions

What is the difference between advisory fuel rates and the 45p mileage allowance?

Advisory fuel rates (AFRs) apply when an employee drives a company car and only cover fuel. The 45p (then 25p over 10,000 miles) Approved Mileage Allowance Payment (AMAP) rate applies when an employee uses their own car for work and covers fuel plus wear, insurance and running costs. You use one or the other, never both.

How often do advisory fuel rates change?

HMRC reviews and republishes the rates four times a year, taking effect on 1 March, 1 June, 1 September and 1 December. You can keep using the previous quarter's rates for up to one month after a change to give payroll time to update.

What happens if I pay more than the advisory rate?

If you reimburse above the advisory rate and cannot prove the actual cost per mile was higher, the excess counts as taxable earnings. The employee pays Income Tax on it and the employer may owe Class 1 National Insurance. Paying at or below the rate keeps the whole payment tax-free.

What rate applies to a fully electric company car?

Electric company cars use the Advisory Electricity Rate (AER). From 1 June 2026 this is 7p per mile for home charging and 15p per mile for public charging. Hybrid cars are treated as petrol or diesel, using the normal engine-size bands.

Source: HMRC — Advisory fuel rates (gov.uk), rates effective from 1 June 2026. Always check gov.uk for the latest quarterly figures.