HMRC Advisory Fuel Rates

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HMRC Announces Advisory Fuel Rates From 1 September 2018

HM Revenue and Customs (HMRC) has increased its mileage rates for smaller petrol engined cars as it announces the Advisory Fuel Rates applicable for the coming quarter.

Under the new AFR rates, which are effective for the three months from 1st September, there are a total of four changes: a 1p increase for petrol vehicles with an engine size of either 1400cc or less and 1401cc to 2000cc which are now 12p per mile and 15p per mile respectively; a 1p decrease for LPG vehicles above 2,000cc to 13p per mile; and a 1 p increase for the 1601 to 2000cc engined diesel vehicles taking it to 12p per mile.

All other rates are unchanged.

The increases 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.

The new rates are as follows, and are effective from June 1, although employers can use the previous rates for up to one month from the date the new rates apply:

Engine size Petrol LPG
1400cc or less 12p 7p
1401cc to 2000cc 15p 9p
Over 2000cc 22p 13p
Engine size Diesel
1600cc or less 10p
1601cc to 2000cc 12p
Over 2000cc 13p

 

Hybrid cars are treated as either petrol or diesel cars for this purpose.

The recently introduced Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not classed as a fuel for car fuel benefit purposes.

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

Engine size Petrol LPG
1400cc or less 11p 7p
1401cc to 2000cc 14p 9p
Over 2000cc 22p 14p
Engine size Diesel
1600cc or less 10p
1601cc to 2000cc 11p
Over 2000cc 13p

 

By |August 24th, 2018|Categories: Driving, Fleet|Comments Off on HMRC Advisory Fuel Rates