HMRC publishes new AFR rates
The new rates, which are effective from 1 June, see the introduction of different engine size bandings for diesel models. Previously, diesels were rated as either below or above 1400cc. Now, HMRC has introduced a new three-tier system, with diesel engines rated as 1600cc or less, 1601cc to 2000cc and over 2000cc. The AFR rates respectively for the three bands are 12p, 15p and 18p, which compares to 13p, 13p and 16p for the old system.
The engine size bandings remain the same for petrol and LPG at 1400cc or less, 1401cc to 2000cc or over 2000cc. The figure for small-engined petrols has gone up by 1p to 15p, mid-sized up by 2p to 18p and large-sized up by 3p for 26p. These figures also cover petrol hybrid cars.
For LPG, all size engines gain an extra penny for the AFR rate, standing at 11p, 13p and 18p respectively.
The new rates are based on fuel prices of 136.1 pence per litre for petrol, 140.8 for diesel and 77.3 for LPG.
HMRC announced earlier this week that it will now review the AFR rates four times a year – on 1 March, 1 June, 1 September and 1 December – but will no longer consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates.For more of the latest industry news, click here.