HMRC Advisory Fuel Rates

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Advisory Fuel Rates for September 2019

HM Revenue and Customs (HMRC) has updated its Advisory Fuel Rates (AFRs) from 1 September.

Under the new rates, petrol vehicles see 1 ppm rate decreases for engine sizes above 1.4 litres. 1601 to 2000cc diesel engines see a rate decrease of a penny a mile. And LPG sees a rate increase for the 1401- 2000cc bracket, when other rates are unchanged.

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 September 2019:

Engine sizePetrolLPG
1400cc or less12p8p
1401cc to 2000cc14p10p
Over 2000cc21p14p
Engine sizeDiesel
1600cc or less10p
1601cc to 2000cc11p
Over 2000cc14p

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 2000cc15p9p
Over 2000cc22p14p
Engine sizeDiesel
1600cc or less10p
1601cc to 2000cc12p
Over 2000cc14p

Interested in Alternative Fuel Vehicles (AFVs)?

If you are considering how alternative fuel vehicles could work for your business, check out our series of guides that will give you a great starting point in understanding what the pros and cons could be. We’ve also been researching the attitudes of drivers towards these vehicles and the new technology over a 12 month period – discover the findings in our report.

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By |August 29th, 2019|Categories: Driving, Fleet|Comments Off on HMRC Advisory Fuel Rates