HMRC Advisory Fuel Rates

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Advisory Fuel Rates for March 2019

HM Revenue and Customs (HMRC) has reduced its mileage rates for most cars in the new rates which apply from 1 March. All petrol cars plus LPG vehicles with an engine of 1.4 litres or less had have rates fall by 1p per mile. The larger LPG engined categories have been reduced by 2ppm.

Under the new AFR rates, which are effective for the three months from March 1, there is no change to the rates for diesel cars with an engine size of 1.6 litres or lower, but the rate for larger engined diesel cars has also reduced by 1ppm.

These rates are introduced on the back of recent fuel price reductions, largely driven by supermarkets battling it out for leadership.

The advisory electricity rate (AER) first introduced in September 2018 for plug-in electric cars remains unchanged at 4ppm.

The AFR changes are relevant as the company car advisory fuel rates are used by organisations to reimburse drivers for fuel used in incurring business, rather than private mileage. Companies can use the old rates for up to one month from the date the new rates apply.

The company car mileage reimbursement rates are based on current petrol and diesel prices from the Department for Energy and Climate Change, with the LPG taken from the UK average price from the AA website in the previous month.

In the absence of any specific rates for plug-in electric hybrid cars (PHEVs), they are treated as either petrol or diesel cars for this purpose.

Rates from 1 March 2019:

Engine sizePetrolLPG
1400cc or less11p7p
1401cc to 2000cc14p8p
Over 2000cc21p13p
Engine sizeDiesel
1600cc or less10p
1601cc to 2000cc11p
Over 2000cc13p

The previous rates which can be used for another month from the date the new rates apply, were:

Engine sizePetrolLPG
1400cc or less12p8p
1401cc to 2000cc15p10p
Over 2000cc22p15p
Engine sizeDiesel
1600cc or less10p
1601cc to 2000cc12p
Over 2000cc14p
By |February 22nd, 2019|Categories: Driving, Fleet|Comments Off on HMRC Advisory Fuel Rates