HMRC has published new Advisory Fuel Rates (AFRs) effective from Tuesday 1 June for company car drivers claiming back fuel costs from their employer.
As Fleet News reports, there are changes to petrol, diesel and LPG pence per mile (PPM) rates. In particular, the diesel rate for company cars with an engine size of more than 2,000cc increases by 1ppm, from 12ppm to 13ppm. The AFR rates for diesel cars up to 1,600cc and from 1,601-2,000cc remain unchanged at 9ppm and 11ppm, respectively.
For petrol company cars, all three rates have increased by 1ppm, meaning the AFR rate for vehicles up to 1,400cc is 11ppm, while cars with an engine of 1,401-2,000cc and more than 2,000cc have a rate of 13ppm and 19ppm, respectively.
For more details visit: https://www.gov.uk/guidance/advisory-fuel-rates
Methodology
The advisory electricity rate for fully electric cars is calculated using “published consumption rates, adjusted to reflect real driving conditions and the average cost of electricity”. The advisory fuel rates are worked out from the fuel prices in the tables below.
Petrol
|
Engine size (cc) |
Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Rate per mile |
Advisory fuel rate |
|
Up to 1400 |
57.0 |
52.7 |
127.2 pence |
578.2 pence |
11.0 pence |
11 pence |
|
1401 to 2000 |
48.2 |
44.6 |
127.2 pence |
578.2 pence |
13.0 pence |
13 pence |
|
Over 2000 |
32.7 |
30.3 |
127.2 pence |
578.2 pence |
19.1 pence |
19 pence |
Diesel
|
Engine size (cc) |
Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Rate per mile |
Advisory fuel rate |
|
Up to 1600 |
71.3 |
65.9 |
131.0 pence |
595.7 pence |
9.0 pence |
9 pence |
|
1601 to 2000 |
57.9 |
53.4 |
131.0 pence |
595.7 pence |
11.2 pence |
11 pence |
|
Over 2000 |
49.8 |
45.8 |
131.0 pence |
595.7 pence |
13.0 pence |
13 pence |
LPG
|
Engine size (cc) |
Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Rate per mile |
Advisory fuel rate |
|
Up to 1400 |
45.6 |
42.2 |
73.6 pence |
334.6 pence |
7.9 pence |
8 pence |
|
1401 to 2000 |
38.5 |
35.7 |
73.6 pence |
334.6 pence |
9.4 pence |
9 pence |
|
Over 2000 |
26.2 |
24.2 |
73.6 pence |
334.6 pence |
13.8 pence |
14 pence |
Rates
The advisory electricity rate for fully electric cars is 4 pence per mile.
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.
From 1 June 2021
You can use the previous rates for up to 1 month from the date the new rates apply.
|
Engine size |
Petrol – rate per mile |
LPG – rate per mile |
|
1400cc or less |
11 pence |
8 pence |
|
1401cc to 2000cc |
13 pence |
9 pence |
|
Over 2000cc |
19 pence |
14 pence |
|
Engine size |
Diesel – rate per mile |
|
1600cc or less |
9 pence |
|
1601cc to 2000cc |
11 pence |
|
Over 2000cc |
13 pence |
1 March 2021 to 31 May 2021
|
Engine size |
Petrol – rate per mile |
LPG – rate per mile |
|
1400cc or less |
10 pence |
7 pence |
|
1401cc to 2000cc |
12 pence |
8 pence |
|
Over 2000cc |
18 pence |
12 pence |
|
Engine size |
Diesel – rate per mile |
|
1600cc or less |
9 pence |
|
1601cc to 2000cc |
11 pence |
