HMRC has been forced into a dramatic U-turn ahead of its new rates for petrol, diesel and electric vehicle drivers, just days before they launch.
On Monday, September 1, HM Revenue and Customs will roll out new advisory fuel rates for people who drive company cars through their employers.
Advisory fuel rates are applicable for employees being reimbursed for business travel completed in cars provided by their companies.
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New AFRs are released every three years, with separate rates for users of petrol, diesel, electric and liquefied petroleum gas vehicles.
The new HMRC advisory fuel rates will be launched on September 1
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The new rates for September were unveiled on Friday, August 22, including the new charges for public and home charging of electric vehicles.
However, HMRC was forced to update the public charger rate for electric cars on Tuesday, August 26.
As part of the new changes, the standard rate for electric vehicles was split up for those who use home chargers and others who use public chargers.
Drivers will be reimbursed eight pence per mile when charging at home, or 14 pence per mile if they use a public charger.
New rates have been added by HMRC to account for home and public EV chargers
| PAHowever, HMRC acknowledged that it had made a mistake when publishing figures for electric car owners, as the initial charge suggested that reimbursement for using a public charger would be 12p.
This has since been corrected to 14 pence. It calculated the electricity cost per kilowatt-hour, 51p, which should be weighted against car sales at a rate of 3.59.
A spokesperson for HMRC said: "We've corrected this figure on our guidance page and apologise for any confusion caused," they told Fleet News.
HMRC sources the "slow or fast public charge cost per kilowatt-hour price" from the Zapmap public charging price index, which is published every month.
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When the new rates launch on September 1, motorists could see small changes to the rates they pay, depending on what vehicle they drive.
Petrol cars with engines between 1,401cc and 2,000c, and those above 2,000cc, will see their costs per mile fall to 14 pence and 22 pence respectively.
However, diesel cars with engines up to 1,600cc will see prices rise to 12 pence per mile, while engines above 2,000cc will also rise to 18 pence.
Drivers of liquefied petroleum gas (LPG) vehicles, which is also known as Autogas, will not see prices change from September.
HMRC also includes advisory fuel rates for vehicles powered by LPG | REUTERSAdvisory fuel rates per mile from September 1, 2025
Petrol
Engines up to 1,400cc - Remains at 12 pence
Between 1,401cc and 2,000cc - Reduced to 14 pence
Over 2,000cc - Reduced to 22 pence
Diesel
Engines up to 1,600cc - Raised to 12 pence
Between 1,601cc and 2,000cc - Remains at 13 pence
Over 2,000cc - Raised to 18 pence
Liquefied Petroleum Gas (LPG)
Engines up to 1,400cc - Remains at 11 pence
Between 1,401cc and 2,000cc - Remains at 13 pence
Over 2,000cc - Remains at 21 pence
Electric
Home charger - 8 pence
Public charger - 14 pence