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.