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Advisory fuel rates from June

Date: 20th April 2017 | Post by: HaesCooper | Category: Company Tax Updates & Information, HMRC Updates

Revised rates. HMRC has updated its advisory fuel rates (AFRs) for company cars. These apply from 1 June 2014, but you can continue to use the previous rates until 30 June 2014.

Private journeys. AFRs can be used to avoid potential tax charges that can arise where:

  • your business pays for fuel put into a company car or van by a director or employee who uses the vehicle for private journeys, e.g. for travel between home and their normal place of work; or
  • an employee meets the cost of fuel used in their company car or van and you pay them an allowance to cover any business travel.

The table shows the new AFRs, with the previous rates in brackets.

Engine sizePetrolLPGDiesel
Up to 1,400cc14p (14p)9p (9p)
Up to 1,600cc12p (12p)
1,401cc to 2,000cc16p (16p)11p (11p)
1,601cc to 2,000cc14p (14p)
Over 2,000cc24p (24p)16p (17p)17p (17p)


Revised advisory fuel rates apply from 1 June 2014. Employees who reimburse their employers at these rates won’t be taxed on a benefit in kind for fuel they’ve used on private journeys in their company cars.

Tags: company cars, Employee benefits