Business mileage calculator
See what an employer can repay tax free for business miles, at HMRC advisory fuel rates for a company car or the approved mileage rates for your own car, and how that compares with what the fuel actually costs.
Your journeys
The company car
HMRC treats hybrid cars as petrol or diesel cars.
Compare with your real fuel cost
Starts at the latest DESNZ weekly UK petrol average. Change it for diesel.
| Business miles | 3,000 |
|---|---|
| Advisory rate | 17.0p a mile |
| Your fuel cost a mile | 17.7p |
| Your fuel cost for the period | £531.23 |
| Reimbursed at the advisory rate | £510.00 |
At 17.7p a mile, the advisory rate is £21.23 less than the fuel cost for these miles. HMRC guidance says a higher rate can be used if the fuel cost per mile can be shown to be higher.
Official rates used
Company cars: HMRC advisory fuel rates from 1 September 2026. Petrol 14p, 17p, 27p; diesel 15p, 16p, 22p; LPG 11p, 13p, 20p (by engine size band); electric 7p home and 15p public. Own cars: 55p a mile for the first 10,000 business miles in a tax year, then 25p.
Car Lease Deals UK, carleasedealsuk.co.uk. Rates: HMRC advisory fuel rates and approved mileage allowance payments (gov.uk). Printed . An estimate, not advice.
Frequently asked questions
What are HMRC advisory fuel rates?
They are pence-per-mile rates HMRC publishes quarterly for company cars. An employer can repay an employee for business miles at these rates without a tax charge. The current rates apply from 1 September 2026 and vary by fuel type and engine size.
What is the advisory electricity rate?
For fully electric company cars HMRC publishes an advisory electricity rate. From 1 September 2026 it is 7p a mile for home charging and 15p a mile for public charging. HMRC says mileage can be apportioned between the two on a fair and reasonable basis.
How are hybrids treated?
HMRC treats hybrid cars as petrol or diesel cars for advisory fuel rates, so the petrol or diesel rate for the engine size applies.
What are the approved mileage allowance payments?
They apply when an employee uses their own car for business. The tax-free amount is 55p a mile for the first 10,000 business miles in a tax year (from 6 April 2026) and 25p a mile after that.
How often do the advisory rates change?
HMRC reviews them quarterly, with new rates from 1 March, 1 June, 1 September and 1 December. Employers can use the previous rates for up to a month after a change.
Can a different rate be used?
HMRC guidance says an employer can use a higher rate if it can show that the fuel cost per mile is higher. This tool compares your own cost per mile with the advisory rate so you can see the gap.