Alteration to Advisory Fuel Rates for business drivers

HMRC / Tax 

There are a new set of Advisory Fuel Rates for use from the beginning of September 2020.

The Advisory Fuel Rates (AFRs), issued by HRMC , are used by company car drivers claiming fuel costs to ensure they do not pay benefit in kind tax on company provided fuel, or to claim fuel expenses for business mileage.

While most rates have remained static, those drivers of diesel cars with engine sizes 1601cc-2000cc see an increase by 1p from 9p per mile to 10p per mile.

The Advisory Fuel Rates vary depending on the type of fuel used and the size of the engine. Hybrid drivers should use the appropriate diesel or petrol rate depending on the car's fuel.

The current rates are below.

Petrol AFR rates from September 2020

1400cc or less - 10 pence

1401cc to 2000cc - 12 pence

Over 2000cc - 17 pence

Diesel AFR rates from September 2020

1600cc or less - 8 pence

1601cc to 2000cc - 10 pence (up 1p)

Over 2000cc - 12 pence

For drivers of electric vehicles, the Advisory Electricity Rate is 4p per mile.

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