HMRC cuts Advisory Fuel Rates
The latest rates are effective from 1st December until further notice and can be used to reimburse company car drivers for business mileage.
The rates see a 1-2p per mile drop for all petrol-engined cars and a 1p per mile drop for small-engined LPG models. There’s also a 1p per mile reduction for mid and large-sized diesels.
The latest rates (old ones in brackets) are:
|
Engine size |
Petrol |
LPG |
|
1400cc or less |
14p (15p) |
9p (10p) |
|
1401cc to 2000cc |
16p (18p) |
11p (11p) |
|
Over 2000cc |
24p (26p) |
16p (16p) |
|
Engine size |
Diesel |
|
1600cc or less |
12p (12p) |
|
1601cc to 2000cc |
14p (15p) |
|
Over 2000cc |
17p (18p) |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
These rates are calculated from the fuel prices in the tables below:
Petrol
| Engine size (cc) | Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Pence per mile |
AFR |
|---|---|---|---|---|---|---|
| up to 1400 | 51.06 | 43.4 | 129.9 | 590.5 | 13.6 | 14 |
| 1401 – 2000 | 42.24 | 35.9 | 129.9 | 590.5 | 16.4 | 16 |
| over 2000 | 28.63 | 24.3 | 129.9 | 590.5 | 24.3 | 24 |
Diesel
| Engine size (cc) |
Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Pence per mile |
AFR |
|---|---|---|---|---|---|---|
| Up to 1600 | 62.36 | 53.0 | 137.5 | 625.0 | 11.8 | 12 |
| 1601 to 2000 | 53.25 | 45.3 | 137.5 | 625.0 | 13.8 | 14 |
| Over 2000 | 43.30 | 36.8 | 137.5 | 625.0 | 17.0 | 17 |
LPG
| Engine size (cc) |
Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Pence per mile |
AFR |
|---|---|---|---|---|---|---|
| up to 1400 | 40.8 | 34.7 | 70.0 | 318.2 | 9.2 | 9 |
| 1401 – 2000 | 33.8 | 28.7 | 70.0 | 318.2 | 11.1 | 11 |
| over 2000 | 22.9 | 19.5 | 70.0 | 318.2 | 16.3 | 16 |
For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.
Natalie Middleton
Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.
