There are new Advisory Fuel Rates (AFRs) released by HMRC which start from Thursday 01 June. The AFRs can be used by drivers to claim back fuel costs from their employer or for businesses to reclaim private mileage from drivers when all fuel is paid for by the business.
Using AFRs avoids paying punitive fuel tax.
The latest figures see the Advisory Electricity Rate (AER) – which is used to calculate costs for electric vehicles – remain static at 9p per mile.
For company car drivers of diesels, the rates are cut by between 1p to 2p per mile depending on engine size. Hybrid vehicles are categorised as petrol or diesel models, based on their main fuel type.
The rates are calculated by HMRC using figures supplied by the Business, Energy, & Industrial Strategy (BEIS), as well as information on energy consumption supplied by the Department for Transport (DfT). AFRs are reviewed quarterly in an effort to reflect fuel and energy costs. The next change is scheduled for 01 September.
New AFR rates effective from 01 June
| Diesel (inc hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
| Up to 1,600cc | 12 pence (-1p) |
| 1,601cc – 2,000 cc | 14 pence (-1p) |
| Over 2,000cc | 18 pence (-2p) |
| Petrol (inc hybrid): engine size (cc) | Advisory Fuel Rate (AFR) |
| Up to 1,400cc | 13 pence (-) |
| 1,401cc – 2,000 cc | 15 pence (-) |
| Over 2,000cc | 23 pence (-) |
| Electric: fully-electric | Advisory Fuel Rate (AFR) |
| All models | 9 pence (-) |
Advice and assistance on fuel management
For help with managing fuel costs for your fleet, talk to one of our experts on0330 822 4500or emailsales@cbvc.co.uk.
