Advisory Fuel Rates for company car users

HMRC has published the latest Advisory Fuel Rates (AFR) for company car users, effective from 1st September 2017.

The updated rates see reductions in some rates across all fuel types (most notably for mid-engine petrol cars and diesel cars with engines over 2,000c) on the previous quarter rates, to reflect the recent decline in pump prices.

As always, please note that the rates only apply in the following circumstances

  • If the employee pays for their own fuel, the employer can reimburse for their business mileage using these rates
  • If the employer pays for all of the employee’s fuel, the employee can reimburse for their private mileage using these rates

New rates from 1st September (the previous rates for 1st June are shown in brackets):

Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 11p (11p) 7p (7p)
1401cc to 2000cc 13p (14p) 8p (9p)
Over 2000cc 21p (21p) 13p (14p)

 

Engine size Diesel – amount per mile
1600cc or less 9p (9p)
1601cc to 2000cc 11p (11p)
Over 2000cc 12p (13p)

Hybrid cars are treated as either petrol or diesel cars for this purpose. HMRC review rates quarterly on 1 March, 1 June, 1 September and 1 December.

The HMRC advisory fuel rates are available here, and more details about how to use them are here.

As always, employers have a period of grace of up to one month from 1st September before they need to switch to these updated rates.

Please contact us using the form below for further information: