HM Revenue and Customs (HMRC) has updated its Advisory Fuel Rates (AFRs) from 1st June 2020.
All but advisory electric rates have been reduced under the new guidance, attesting to the falling fuel prices throughout the coronavirus crisis. Advisory electricity rate (AER) remains the same at 4ppm. The changes are:
- Petrol engines over 2000cc decrease by 3 pence per mile from 20p to 17p (-15%)
- Petrol engines between 1401 and 2000cc rate reduced by 2 pence per mile from 14p to 12p (-14%)
- Petrol engines 1400cc or lower, also reduce by 2 pence from 12p to 10p per mile (-16%)
- LPG engines over 2000cc decrease by 3 pence per mile from 14p to 11p (-21%)
- LPG engines between 1401 and 2000cc rate reduced by 2 pence per mile from 10p to 8p (-20%)
- LPG engines 1400cc or lower, also reduce by 2 pence from 8p to 6p per mile (25%)
- Diesel also sees a 1 penny per mile decline for engine sizes of 1600cc or lower (-11%), and those over 2000cc (-8%)
- Diesel engines between 1601 and 2000cc see a fall of 2 pence per mile to 9p (-18%)
The changes may be important to you if you have a company car(s). They can be used to reimburse employees for fuel used, rather than private mileage. Alternatively, it can be used to calculate how much your employees should repay you for privately used fuel.
From 1 June 2020
| Engine size | Petrol – amount per mile | LPG – amount per mile |
| 1400cc or less | 10p | 6p |
| 1401cc to 2000cc | 12p | 8p |
| Over 2000cc | 17p | 11p |
| Engine size | Diesel – amount per mile |
| 1400cc or less | 8p |
| 1401cc to 2000cc | 9p |
| Over 2000cc | 12p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
Contact us to discuss how this affects your business.