Mileage rates for business drivers: What you need to know
January 17th, 2025
If you drive for business, understanding HMRC’s mileage rates is essential for claiming fuel and other expenses. These rates, known as Advisory Fuel Rates (AFRs), apply to company cars and vans.
AFRs determine how much an employee can be reimbursed for using their own fuel for business journeys in a company-owned vehicle. Employers can also use these rates to recover costs for private journeys taken with company fuel.
The rates are reviewed quarterly and vary by fuel type (petrol, diesel, LPG) and engine capacity. They are calculated based on average fuel efficiency and forecourt prices across the UK, rounded to the nearest penny.
Staying updated on AFR changes ensures employees and employers manage expenses accurately and fairly.