Key Information
The Advisory fuel rates are reviewed four times a year by HM revenue and customs and are recommended as a guide to reclaiming business mileage.
Advisory Fuel Rates from 1 March 2025
| Engine size (cc ) |
Petrol – Pence per mile |
Diesel – Pence per mile | LPG – Pence per mile |
| 0 – 1400 | 12.0 | 12.0 | 11.0 |
| 1401 – 2000 | 15.0 | 13.0 | 13.0 |
| 2000 and Over | 23.0 | 17.0 | 21.0 |
Please Note :
- Hybrid cars are treated as either petrol or diesel cars for this AFR purpose. HMRC has not issued AFR’s .
- The advisory electricity rate (AER) for plug-in cars remains unchanged at 7.0 ppm.
Source: HM Revenue & Customs
Annual VED road tax rate
There will be significant changes in 2025. Electric vehicles will no longer be exempt from VED from April 2025. The change applies to electric cars, vans and motorcycles. Currently, EVs are exempt from both the annual standard rate VED and the premium car supplement for new cars with a list price of £40,000 or more.
Under the new rules new zero emission cars registered on or after 1 April 2025 will be liable to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions of 1g/km to 50g/km) currently £10 a year.
From the second year of registration onwards, they will move to the standard rate.
The government also intends to tax older electric vehicles, with those first registered between 1 April 2017 and 31 March 2025 set to pay the standard rate.
The expensive car supplement exemption for electric vehicles is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement.
While most bands will rise in line with RPI inflation, changes have been made to the first year rates that could mean a bill of almost £5500 for some buyers.
Vehicles which cost £40,000 or more (after options) are subject to a further £410 annual supplement (this is up from £390) that runs for six years. This kicks in after the first-year’s CO2-based charge, so you’ll pay the supplement from years two to six of the car’s life.
Even if you haggle a plus-£40,000 car down to below £40,000, you’ll still have to pay the supplement as it’s based on the cost of the car for tax purposes. The £40,000 calculation also includes all options and trim levels, and there is effectively no escaping this surcharge.
On 1 April 2025 EVs lose their VED exemption. They will pay the standard annual rate from the second year of registration onwards, currently set at £180 but this is likely to have increased by then in line with inflation. Hybrids will also lose the £10 annual discount which they currently benefit from.
Vehicle Excise Duty ( VED ) tax band Table – 2025 / 2026
| CO2 Emissions (g/km) | Standard petrol/diesel rate | First Year Rate |
| 0 | £195 | £10 |
| 1 to 50 | £195 | £110 |
| 51 to 75 | £195 | £130 |
| 76 to 90 | £195 | £270 |
| 91 to 100 | £195 | £350 |
| 101 to 110 | £195 | £390 |
| 111 to 130 | £195 | £440 |
| 131 to 150 | £195 | £540 |
| 151 to 170 | £195 | £1,360 |
| 171 to 190 | £195 | £2,190 |
| 191 to 225 | £195 | £3,300 |
| 226 to 255 | £195 | £4,680 |
| Over 255 | £195 | £5,490 |
Please Note:
Information obtained from www.Gov.uk and other sources
All information on this page is for illustration only. ecofleet accept no liability / responsibility regarding the contents of this page. E &EO
