We reach June, three months since the last AFR/AER update and therefore HMRC have provided another update to the advisory rates for the coming three months, effective from 1st June 2025.
In short, we have one change to diesel rates, two changes to petrol rates with the advisory electric rate remaining unchanged once again.
These rates that can be used to reimburse Internal Combustion Engine (ICE) vehicle drivers for business mileage depend on the engine size, so it’s important that employees and employers are up-to-date on the correct rates for each.
Diesel vehicles have a different rate for the three possible vehicle engine sizes which are up to 1600cc, 1601-2000cc and over 2000cc. Similar methodology is used for petrol vehicles, with the rate depending on whether the engine size is up to 1400cc, between 1401-2000cc or over 2000cc.
Now, from 1st June 2025, diesel vehicles with an engine size up to 1600cc receive a reimbursement rate of 11p per mile, down 1p from 12p. The other two rates for 1601-2000cc and over 2000cc remain at 13p and 17p respectively.
For petrol, that are a couple of changes. Whilst the rate for vehicles up to 1400cc remains at 12p, the rate for those in the 1401-2000cc bracket is down to 14p from 15p and the over 2000cc is down from 23p to 22p.
The advisory electric rate will remain once again at 7p per mile, making actual cost or TMC EV Rates continue to be an attractive alternative for fleet managers when it comes to reimbursing electric vehicle drivers for their home, depot and public charging.
Any hybrid vehicle drivers would use the appropriate petrol or diesel rates.
