A small change, but one worth checking if you have employees using company cars.
HMRC changed its advisory fuel rates from 1 September 2026.
The main changes are:
• Petrol cars over 2,000cc — 27p per mile
• Diesel 1,601–2,000cc — 16p per mile
• Diesel over 2,000cc — 22p per mile
• LPG over 2,000cc — 20p per mile
• Electric cars stay at 7p per mile for home charging and 15p per mile for public charging
These rates are used when reimbursing business mileage in a company car, or when an employee repays the cost of private fuel.
The bit that often causes confusion is that these are not the same as the 45p/25p mileage rates for employees using their own car for business.
It is not a major change, but if your payroll or expenses process uses fixed mileage rates, it is worth making sure they have been updated.
Small details like this are easy to miss, but they are exactly the sort of thing that can create unnecessary corrections later.
#HMRC #CompanyCars #Payroll #BusinessExpenses #SME
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