Pick when the miles were driven, the fuel and the engine size, and type the business miles. You get HMRC's rate, the tax-free payment, and the carbon the same miles count for in your carbon report.

Work out a mileage payment

Advisory rate
16p a mile
Tax-free payment
£160.00
Carbon for your report
277.0 kg CO2e

Rates from 1 September 2026. Carbon uses the 2026 government factor of 0.277 kg CO2e a mile for a medium car on diesel. In a company car it's Scope 1 (Scope 2 for the electricity).

Contains public sector information licensed under the Open Government Licence v3.0. Sources: HMRC, Advisory fuel rates; DESNZ, greenhouse gas reporting conversion factors. Not tax advice.

Every rate since 1 September 2024

FromPetrol 1400cc or lessPetrol 1401cc to 2000ccPetrol Over 2000ccDiesel 1600cc or lessDiesel 1601cc to 2000ccDiesel Over 2000ccLPG 1400cc or lessLPG 1401cc to 2000ccLPG Over 2000ccElectric (home)Electric (public)
1 September 202614p17p27p15p16p22p11p13p20p7p15p
1 June 202614p17p26p15p17p23p11p13p21p7p15p
1 March 202612p14p22p12p13p18p10p12p19p7p15p
1 December 202512p14p22p12p13p18p11p13p21p7p14p
1 September 202512p14p22p12p13p18p11p13p21p8p14p
1 June 202512p14p22p11p13p17p11p13p21p7p–
1 March 202512p15p23p12p13p17p11p13p21p7p–
1 December 202412p14p23p11p13p17p11p13p21p7p–
1 September 202413p15p24p12p14p18p11p13p21p7p–

Pence per mile. Before 1 September 2025 there was a single electric rate, shown under home charging.

How HMRC sets the rates

Each rate is the fuel price divided by the average miles per gallon of company cars in that band. For the rates from 1 September 2026, HMRC used 159.9p a litre for petrol and 179.2p for diesel, and mean figures of 50.7, 42.8, 27.2 mpg for petrol cars and 55.7, 49.6, 36.6 mpg for diesel. Electric cars are assumed to do 3.59 miles per kWh, at 24.47p a kWh at home and 54p on public chargers.

Worked example

An employee drives 800 business miles in a 1.8 litre diesel company car after 1 September 2026. You can pay up to 800 × 16p = £128.00 tax-free. Those miles add 800 × 0.277 = 221.6 kg CO2e to your Scope 1.

How Carbon Recycling helps

The mileage your team already claims is most of what a carbon report needs for cars. Add it by vehicle or upload it from a spreadsheet, and Carbon Recycling sorts company cars into Scope 1 and employees' own cars into Scope 3, with the right factor for each car's size and fuel.

Data sources and licences

  • Contains public sector information licensed under the Open Government Licence v3.0. Source: HMRC, Advisory fuel rates.
  • Contains public sector information licensed under the Open Government Licence v3.0. Source: DESNZ, greenhouse gas reporting conversion factors.

Rates before 1 September 2024 are only on the National Archives copy of HMRC's page. This calculator is not tax advice. HMRC does not endorse us.

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