New HMRC Fuel Advisory Rates for Diesel Drivers Effective June 1
HMRC confirms new 26p per mile rule for drivers in diesel cars

Image: Birmingham Live
The HMRC has announced new advisory fuel rates for diesel vehicles effective June 1, 2026. Diesel cars with engines up to 1600cc will incur a charge of 15p per mile, while those with larger engines will face higher charges, up to 23p per mile for engines over 2000cc. These rates help company car drivers calculate fuel reimbursements.
- 01The new advisory fuel rates for diesel cars will be effective from June 1, 2026.
- 02Diesel vehicles with engine sizes of 1600cc or less will face a charge of 15p per mile.
- 03For engines between 1601cc and 2000cc, the charge will be 17p per mile.
- 04Vehicles with engines over 2000cc will incur the highest charge of 23p per mile.
- 05HMRC updates its Advisory Fuel Rates (AFRs) quarterly to reflect fuel price changes.
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The HMRC (Her Majesty's Revenue and Customs) has confirmed new advisory fuel rates for diesel vehicles, which will take effect on June 1, 2026. The updated rates include a 15p per mile charge for diesel cars with engine sizes of 1600cc or less, while those with engines ranging from 1601cc to 2000cc will incur a 17p per mile charge. The highest rate of 23p per mile applies to diesel cars with engines exceeding 2000cc. These Advisory Fuel Rates (AFRs) are crucial for company car drivers, as they help determine how much fuel expenses can be claimed back from employers. HMRC issues these rates quarterly, allowing for timely adjustments in response to fluctuating fuel prices. It's important for drivers to adhere to these rates to avoid any taxable profit or National Insurance liabilities. If reimbursements exceed the AFRs without appropriate documentation of higher fuel costs, the excess will be treated as taxable profit.
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These new rates will affect company car drivers in the UK, influencing how they calculate fuel reimbursements.
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