The latest company car advisory electric rate (AER) and advisory fuel rates (AFR) have been confirmed by HM Revenue & Customs (HMRC). The rates will apply from 01 March 2025 and are broadly held at the previous values.
The AER for fully electric cars will remain at 7 pence per mile (ppm). Hybrid cars are treated as either petrol or diesel cars for AFR purposes.
On the HMRC guidance page, there is also information about how AERs and AFRs are calculated. For petrol cars, rates have been held for engines 1,400cc and smaller (12ppm) and those 2,000cc and above (23ppm). Mid-size petrol engines, 1,401cc-2,000cc have seen their rate increase by one penny to 15ppm.
LPG vehicles have seen no changes, while vehicles with small diesel engines – 1,600cc or less – have seen their rate increase by one penny, to 12ppm. Vehicles with diesel engines from 1,601cc to 2,000cc remain at 13ppm, while those over 2,000cc are also unchanged at 17ppm
See the GOV.UK website for the Advisory fuel rates from 1 March 2025 including AER.
