The Advisory Fuel Rates (AFR) as of 1 March,
Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 11 pence 7 pence
1401cc to 2000cc 14 pence 8 pence
Over 2000cc 21 pence 13 pence
Engine size Diesel – amount per mile
1600cc or less 10 pence
1601cc to 2000cc 11 pence
Over 2000cc 13 pence
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The Advisory Electric Rate (AER) which was introduced in September for 100% electric cars will remain the same at 4p per mile. Electricity is not a fuel for car fuel benefit purposes.
The AFR and AER are deemed to be tax and National Insurance free.
Both rates can be applied for fuel per mile,
- to reimburse employees for business travel in their company cars.
- when you require employees to repay the cost of fuel used for private travel.
If your employee does not repay the private fuel used during the tax year then you will need to,
- report on their P11D
- pay Class 1A National Insurance on the value of the fuel benefit
If you travel as a result of running your business (other than home to work) and
- are unsure on what you can claim
- are considering your options regarding the company purchasing a vehicle
- want to understand the rules around company car benefits in kind
- or anything else associated with business travel
Please contact us so that we can ensure the advice you are given is specific to your circumstances on 0113 2864486
Source: HMRC
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