United KingdomGOV.UK
Petrol company cars over 2,000cc get a 27p September mileage rate
Larger diesel rates and the LPG rate above 2,000cc fall by 1p per mile from 1 September 2026; employers can continue using the previous rates for up to one month.
By Taxxa AI OyPublished 21 August 2026
HMRC’s advisory fuel rates from 1 September 2026 increase the rate for petrol company cars above 2,000cc from 26p to 27p per mileGOV
GOV. From September 2026, diesel cars with engines of 1,601–2,000cc have a rate of 16p per mile
GOV. In June to August 2026 that diesel band had a rate of 17p
GOV. The diesel rate above 2,000cc falls from 23p to 22p
GOV
GOV. The September LPG rate above 2,000cc is 20p per mile. For June to August 2026, the LPG rate in that band was 21p per mile
GOV.
Petrol and LPG rates up to 2,000cc and diesel rates up to 1,600cc are unchanged. Petrol remains 14p per mile for engines up to 1,400ccGOV and 17p for 1,401–2,000cc
GOV. LPG remains 11p
GOV and 13p respectively for those same engine bands
GOV. Diesel engines up to 1,600cc continue at 15p per mile
GOV. HMRC rounds the final advisory fuel rates to the nearest whole penny.
Fully electric company cars retain rates of 7p per mile for home charging and 15p for public chargingGOV. Where a journey involves both residential and public charging, employers can apportion mileage according to how much charging takes place at each location, using a fair and reasonable calculation. A higher rate can be used where the actual cost per mile is demonstrably higher. Hybrid cars continue to be treated as petrol or diesel cars for these rates
GOV.
The rates apply only to employees using company carsGOV. Their permitted uses are reimbursing business travel and calculating employee repayments for private fuel
GOV. They must not be used for other circumstances
GOV. HMRC allows employers to continue using the previous rates for up to one month from the date the new rates apply
GOV.
For business mileage reimbursement, HMRC says payments no higher than the appropriate engine-size and fuel-type rate create no taxable profit and no Class 1A National Insurance liabilityGOV. Employers can use rates reflecting their circumstances where cars are more efficient or business fuel costs are higher. If an employer pays more than the advisory rate without showing higher fuel costs, the excess is taxable profit and earnings for Class 1 National Insurance purposes
GOV; payments solely for business journeys do not thereby create a private-fuel benefit charge
GOV.
The figures are HMRC’s advisory fuel rates, with the business-only car-fuel exception provided by section 151(3) of the Income Tax (Earnings and Pensions) Act 2003.
Update company-car fuel reimbursement and private-fuel recovery rates for the September schedule, allowing for HMRC’s one-month use of the previous rates.