HMRC Advisory Fuel Rates

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Advisory Fuel Rates for June 2019

HM Revenue and Customs (HMRC) has increased its mileage rates for most cars in the new AFR rates which apply from 1 June.

Under the new rates, all petrol cars and LPG vehicles benefit from rates rises of 1p per mile. There is no change to the rate for diesel cars with an engine size of 1.6 litres or lower, but the rates for larger engined diesel cars have also risen by 1ppm.

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 June 2019:

Engine sizePetrolLPG
1400cc or less12p8p
1401cc to 2000cc15p9p
Over 2000cc22p14p
Engine sizeDiesel
1600cc or less10p
1601cc to 2000cc12p
Over 2000cc14p

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

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

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By |May 28th, 2019|Categories: Driving, Fleet|Comments Off on HMRC Advisory Fuel Rates