The continued high-level of fuel prices has seen HMRC increase the Advisory Fuel Rates for drivers of company provided vehicles.
Rates for both petrol and diesel company cars have increased by at least 1p per mile and can be used from 01 September through to the end of November when the next quarter’s rates are announced.
Current fuel prices, according to the RAC, are 183p for diesel and 169p for petrol cars.
The AFRs can be used to claim business mileage in a company car without incurring punitive fuel tax.
HMRC Advisory Fuel Rates
| Diesel: engine size (cc) | Advisory Fuel Rate |
| Up to 1,600cc | 14 pence (+1p) |
| 1,601cc – 2,000 cc | 17 pence (+1p) |
| Over 2,000cc | 22 pence (+3p) |
| Petrol: engine size (cc) | Advisory Fuel Rate |
| Up to 1,400cc | 15 pence (+1p) |
| 1,401cc – 2,000 cc | 18 pence (+1p) |
| Over 2,000cc | 27 pence (+2p) |
Hybrid vehicles use the appropriate petrol or diesel rates depending on the primary engine fuel; drivers of electric cars use the AER for electric vehicles which remains at 5p a mile.
Commenting, Managing Director of CBVC Vehicle Management, Mike Manners, said:
Even though the Advisory Fuel Rates have been increased, fleets must continue to watch fuel costs closely and have proper fleet fuel management systems in place to monitor and control costs, even though it’s expected that prices might drop slightly from these excessively high prices.
It’s also crucial to explain to fleet drivers they should avoid expensive fill ups at motorway services and use cheaper supermarkets instead. It may also be worth reviewing if trips are necessary and whether an online meeting might be more appropriate and cost effective.
Advice and assistance on fuel management
For help with managing fuel costs for your fleet, talk to one of our experts on 01283 351200or email sales@cbvc.co.uk.
