News added on 06.06.2013

from HMRC LATEST NEWS

Expenses

Advisory Fuel Rates - June 2013

After carrying out a review of current fuel prices, HMRC has updated its Advisory Fuel Rates (AFRs) with effect from June 1 2013. Do you need to start using these new rates immediately?

Purpose of AFRs. By way of a reminder, AFRs are provided by HMRC for employers to apply where they:

  • reimburse employees for business travel using company cars; or
  • require employees to repay the cost of fuel used for private travel in company cars.

New rates. HMRC routinely reviews the published AFRs every three months. The current rates, effective from June 1 2013, are as follows:

Engine size

Petrol

LPG (no change)

1,400cc or less

15p

10p

1,401cc to 2,000cc

17p (previously 18p)

12p

Over 2,000cc

25p (previously 26p)

18p

 

Engine size

Diesel

1,600cc or less

12p (previously 13p)

1,601cc to 2,000cc

14p (previously 15p)

Over 2,000cc

18p

Start date.  You can choose to implement the new rates immediately or use the old rate for up to one further month. From an employer’s point of view, if you use the rates to reimburse employees for business travel using company cars then as the rates for petrol and diesel have reduced, it would make sense to apply the new rates immediately. 

You can use the old rates until the end of June but if you use them to reimburse employees for business travel in company cars, it would be better to implement the new (reduced) rates immediately.

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