HMRC has published new ‘advisory fuel rates’ (AFR) for company cars, which apply to journeys from 1 September 2018.
Advisory fuel rates are set by HMRC so that employers can use these rates to reimburse company car drivers for business fuel.
These rates can also be used if employees are required to repay the cost of fuel used for private travel.
These rates should not be used in relation to vans.
Hybrid cars can be treated as either petrol or diesel cars.
These amounts also apply for VAT purposes, but employers can only reclaim input VAT if the employee supplies a receipt.
Advisory Fuel Rates from 1 September 2018
Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 12 pence 7 pence
1400cc to 2000cc 15 pence 9 pence
Over 2000cc 22 pence 13 pence
Engine size Diesel – amount per mile
1600cc or less 10 pence
1601cc to 2000cc 12 pence
Over 2000cc 13 pence
Advisory Electric Rate
The Advisory Electricity Rate for fully electric cars is 4 pence per mile.
If you would like to discuss, or want help, call Lee Reynolds on 01788 539000.