News added on 03.03.2015

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Cars

Advisory fuel rates from 1 March 2015

After such a fall in fuel prices, HMRC has updated its advisory fuel rates (AFRs) with effect from 1 March 2015. What are the latest rates?

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.

By using these rates, employees will not be charged income tax or NI on the payments.

New rates. HMRC routinely reviews the published AFRs. Following the fall in fuel prices since the last change in December 2014, the rates effective from 1 March 2015 are as follows:

Engine size

Petrol

LPG

1,400cc or less

11p (down from 13p)

8p (down from 9p)

1,401cc to 2,000cc

13p (down from 16p)

10p (down from 11p)

Over 2,000cc

20p (down from 23p)

14p (down from 16p)

 

Engine size

Diesel

1,600cc or less

9p  (down from 11p)

1,601cc to 2,000cc

11p (down from 13p)

Over 2,000cc

14p (down from 17p)

All the advisory fuel rates have been adjusted downwards so you are likely to need to make changes to the amounts the company reimburses you and your employees for business travel in company cars.

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