HMRC cuts Advisory Fuel Rates from 1st March 2016

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Advisory Fuel Rates

The HMRC has reacted to the falling fuel prices at the pumps, by reducing the advisory fuel rate (AFR) for diesel, petrol and appropriate hybrid vehicles, by at least 1p per mile. The latest quarterly review came in to force from the 1st of March 2016.

Company car drivers use the AFRs to claim back business mileage in company cars. They should not be confused with Approved Mileage Allowance Payments (AMAPs), which relate to when drivers use their private cars for business purposes.

The latest AFRs are listed below:

Petrol company car:

1400cc or less: 10p (1p decrease)

1401cc to 2000cc: 12p (1p decrease)

Over 2000cc: 19p (1p decrease)

Diesel company car:

1600cc or less: 8p (1p decrease)

1601cc to 2000cc: 10p (1p decrease)

Over 2000cc: 11p (2p decrease)

Hybrid company car:

Drivers of petrol/electric hybrid company cars should use the petrol rates.

Drivers of diesel/electric hybrid cars should use the diesel rates.

LPG company car:

1400cc or less: 7p (unchanged)

1401cc to 2000cc: 8p (1p decrease)

Over 2000cc: 13p (unchanged)