HMRC has published the latest advisory fuel rates (AFR) for company car users that will come into effective from the beginning of June.
These rates apply from 1 June 2017 and have remained constant (except from petrol cars with engines over 2000c) on the previous quarter rates.
The guidance states that the rates only apply when you either:
- Reimburse employees for business travel using their company car
- Require employees to repay the cost of fuel used for private travel
- You must not use these rates in any other circumstances.
When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A National Insurance to pay.
Engine size
1400cc or less
1401cc to 2000cc
Over 2000cc
Petrol – amount per mile (Mar 17 rate in brackets)
11p (11p)
14p (14p)
21p (22p)
LPG – amount per mile
7p (7p)
9p (9p)
14p (14p)
Engine size
1600cc or less
1601cc to 2000cc
Over 2000cc
Diesel – amount per mile
9p (9p)
11p (11p)
13p (13p)
Hybrid cars are treated as either petrol or diesel cars for this purpose.
HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.
For more in depth information, please contact one of our experts today.
