HMRC Advisory Fuel Rates

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Advisory Fuel Rates from 1 June 2020

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

Under the new guidance, all but the advisory electric rates have been reduced, reflecting the falling fuel prices during the coronavirus crisis. The changes are as follows:

  • Petrol engines over 2000cc decrease by 3 pence per mile from 20p to 17p
  • Petrol engines between 1401 and 2000cc rate reduced by 2 pence per mile from 14p to 12p
  • Petrol engines 1400cc or lower, also reduce by 2 pence to 10p per mile
  • LPG engines over 2000cc decrease by 3 pence per mile from 14p to 11p
  • LPG engines between 1401 and 2000cc rate reduced by 2 pence per mile from 10p to 8p
  • LPG engines 1400cc or lower, also reduce by 2 pence to 6p per mile
  • Diesel also sees a 1 penny per mile decline for engine sizes of 1600cc or lower, and those over 2000cc
  • Diesel engines between 1601 and 2000cc see a fall of 2 pence per mile to 9p

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 2020:

Engine sizePetrolLPG
1400cc or less10p6p
1401cc to 2000cc12p8p
Over 2000cc17p11p
Engine sizeDiesel
1600cc or less8p
1601cc to 2000cc9p
Over 2000cc12p

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 2000cc14p10p
Over 2000cc20p14p
Engine sizeDiesel
1600cc or less9p
1601cc to 2000cc11p
Over 2000cc13p

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May 27th, 2020|Categories: Driving, Fleet|