If you reimburse fuel or charging costs for employees using a company car for business travel there will be no taxable profit and no Class 1A National Insurance, provided the mileage amount paid does not exceed the advisory rates.
From 1 September 2025 the advisory rates per mile for non-electric vehicles are:
| Engine size | Petrol | LPG |
| ≤1400cc | 12p | 11p |
| 1401cc – 2000cc | 14p | 13p |
| > 2000cc | 22p | 21p |
| Engine size | Diesel |
| ≤ 1600cc | 12p |
| 1601cc – 2000cc | 13p |
| > 2000cc | 18p |
The new rates can be applied to journeys taken from 1 September, however you can continue to use the previous rates until 30 September 2025.
Previously, the advisory rate for electric vehicle charging was the same no matter where charging occurred. As of 1 September, using a public charger will attract a higher reimbursement rate than charging at home or another private charging location. This change reflects the additional cost of charging in a public location, such as a motorway service station or hotel, when travelling for business.
From 1 September 2025 the advisory electric rates for fully electric cars are:
| Charging location | Electric |
| Home | 8p |
| Public | 14p |
Hybrid cars may be treated as either petrol or diesel cars for these purposes. See advisory fuel rates here: www.gov.uk/guidance/advisory-fuel-rates
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