HMRC Advisory Fuel Rates - AFR

What Are the HMRC Advisory Fuel Rates

HMRC Advisory fuel rates are normally a mileage rate paid by employers to employees where a company car is also provided or where a cash allowance is provided to purchase / lease a company car.
The rates can be used to:
Reimburse a driver for business mileage where the employee pays for their own fuels
or
Whereby the driver reimburses their employer for personal mileage where fuel is provided.

 

What do HMRC Have to Say

Reimburse employees for business travel in their company cars

If you pay a rate per mile for business travel no higher than the AFR, for the particular engine size and fuel type, HM Revenue and Customs (HMRC) will accept there is no taxable profit and no Class 1A National Insurance to pay.
You can use your own rates which better reflect your circumstances if, for example, your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates.


If you pay rates that are higher than the advisory rates and can’t demonstrate the fuel cost per mile is higher, there is no fuel benefit charge if the mileage payments are solely for miles of business travel. Instead, you will have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.

Require employees to repay the cost of fuel used for private travel

If you have correctly recorded all miles of private travel and used the correct rate (or anything higher) to work out the cost of fuel used for private travel that the employee must repay to you, HMRC will accept there is no fuel benefit charge.


The advisory rates will not be binding where you can demonstrate that employees cover the full cost of private fuel by repaying at a lower rate per mile

How are AFR rates set?

HMRC works out the cost of fuel and compares it against the known average MPG of vehicles and sets a rate accordingly.  The rate is reviewed every 3 months and changed if necessary.

The AFR Rates since Aug 2012

 

Description

Fuel type

Min. engine size

Max. engine size

Pence per mile

Effective from

Effective until

Diesel engine 1600cc or less

DIESEL

0cc

1600cc

12

01/06/2012

28/02/2013

Diesel engine 1600cc or less

DIESEL

0cc

1600cc

13

01/03/2013

31/05/2013

Diesel engine 1600cc or less

DIESEL

0cc

1600cc

12

01/06/2013

31/08/2014

Diesel engine 1600cc or less

DIESEL

0cc

1600cc

11

01/09/2014

28/02/2015

Diesel engine 1600cc or less

DIESEL

0cc

1600cc

9

01/03/2015

31/05/2015

Diesel engine 1600cc or less

DIESEL

0cc

1600cc

10

01/06/2015

N/a

Diesel engine 1601cc to 2000cc

DIESEL

1601cc

2000cc

15

01/06/2012

31/05/2013

Diesel engine 1601cc to 2000cc

DIESEL

1601cc

2000cc

14

01/06/2013

31/08/2013

Diesel engine 1601cc to 2000cc

DIESEL

1601cc

2000cc

15

01/09/2013

30/11/2013

Diesel engine 1601cc to 2000cc

DIESEL

1601cc

2000cc

14

01/12/2013

31/08/2014

Diesel engine 1601cc to 2000cc

DIESEL

1601cc

2000cc

13

01/09/2014

28/02/2015

Diesel engine 1601cc to 2000cc

DIESEL

1601cc

2000cc

11

01/03/2015

31/05/2015

Diesel engine 1601cc to 2000cc

DIESEL

1601cc

2000cc

12

01/06/2015

N/a

Diesel engine over 2000cc

DIESEL

2001cc

-

18

01/06/2012

30/11/2013

Diesel engine over 2000cc

DIESEL

2001cc

-

17

01/12/2013

30/11/2014

Diesel engine over 2000cc

DIESEL

2001cc

-

16

01/12/2014

28/02/2015

Diesel engine over 2000cc

DIESEL

2001cc

-

14

01/03/2015

N/a

LPG engine 1400cc or less

LPG

0cc

1400cc

11

01/06/2012

31/08/2012

LPG engine 1400cc or less

LPG

0cc

1400cc

10

01/09/2012

30/11/2012

LPG engine 1400cc or less

LPG

0cc

1400cc

11

01/12/2012

28/02/2013

LPG engine 1400cc or less

LPG

0cc

1400cc

10

01/03/2013

30/11/2013

LPG engine 1400cc or less

LPG

0cc

1400cc

9

01/12/2013

28/02/2015

LPG engine 1400cc or less

LPG

0cc

1400cc

8

01/03/2015

N/a

LPG engine 1401cc to 2000cc

LPG

1401cc

2000cc

13

01/06/2012

31/08/2012

LPG engine 1401cc to 2000cc

LPG

1401cc

2000cc

12

01/09/2012

30/11/2012

LPG engine 1401cc to 2000cc

LPG

1401cc

2000cc

15

01/12/2012

28/02/2013

LPG engine 1401cc to 2000cc

LPG

1401cc

2000cc

12

01/03/2013

28/02/2014

LPG engine 1401cc to 2000cc

LPG

1401cc

2000cc

11

01/03/2014

28/02/2015

LPG engine 1401cc to 2000cc

LPG

1401cc

2000cc

10

01/03/2015

31/05/2015

LPG engine 1401cc to 2000cc

LPG

1401cc

2000cc

9

01/06/2015

N/a

LPG engine over 2000cc

LPG

2001cc

-

19

01/06/2012

31/08/2012

LPG engine over 2000cc

LPG

2001cc

-

17

01/09/2012

30/11/2012

LPG engine over 2000cc

LPG

2001cc

-

18

01/12/2012

28/02/2014

LPG engine over 2000cc

LPG

2001cc

-

17

01/03/2014

31/05/2014

LPG engine over 2000cc

LPG

2001cc

-

16

01/06/2014

28/02/2015

LPG engine over 2000cc

LPG

2001cc

-

14

01/03/2015

N/a

Petrol engine 1400cc or less

PETROL

0cc

1400cc

15

01/06/2012

30/11/2013

Petrol engine 1400cc or less

PETROL

0cc

1400cc

14

01/12/2013

30/11/2014

Petrol engine 1400cc or less

PETROL

0cc

1400cc

13

01/12/2014

28/02/2015

Petrol engine 1400cc or less

PETROL

0cc

1400cc

11

01/03/2015

31/05/2015

Petrol engine 1400cc or less

PETROL

0cc

1400cc

12

01/06/2015

N/a

Petrol engine 1401cc to 2000cc

PETROL

1401cc

2000cc

18

01/06/2012

31/05/2013

Petrol engine 1401cc to 2000cc

PETROL

1401cc

2000cc

17

01/06/2013

31/08/2013

Petrol engine 1401cc to 2000cc

PETROL

1401cc

2000cc

18

01/09/2013

30/11/2013

Petrol engine 1401cc to 2000cc

PETROL

1401cc

2000cc

16

01/12/2013

28/02/2015

Petrol engine 1401cc to 2000cc

PETROL

1401cc

2000cc

13

01/03/2015

31/05/2015

Petrol engine 1401cc to 2000cc

PETROL

1401cc

2000cc

12

01/06/2015

N/a

Petrol engine over 2000cc

PETROL

2001cc

-

26

01/06/2012

31/05/2013

Petrol engine over 2000cc

PETROL

2001cc

-

25

01/06/2013

31/08/2013

Petrol engine over 2000cc

PETROL

2001cc

-

26

01/09/2013

30/11/2013

Petrol engine over 2000cc

PETROL

2001cc

-

24

01/12/2013

30/11/2014

Petrol engine over 2000cc

PETROL

2001cc

-

23

01/12/2014

28/02/2015

Petrol engine over 2000cc

PETROL

2001cc

-

20

01/03/2015

31/05/2015

Petrol engine over 2000cc

PETROL

2001cc

-

21

01/06/2015

N/a

How do they compare to fuel Prices?

The two charts below show the change in AFR rates against the change in fuel prices over the same period.
HMRC AFR
HMRC Advisory Fuel Rates