HMRC Advisory Fuel Rates

HMRC Advisory Fuel Rates and Electricity Rates

Organisations use HMRC Advisory Fuel Rates (AFRs) and Advisory Electricity Rates (AERs) to reimburse company car mileage for business use only.

As long as the mileage rate used to pay employees for business mileage is less than or equal to the appropriate AFR/AER, then there is no taxable profit or Class 1A National Insurance to be paid.

Use AFRs when employees utilise internal combustion engine vehicles, and AERs for employees using electric vehicles.

All organisations that utilise a fleet must be aware of these rates. Not using these rates will lead to employees being out of pocket or businesses paying too much. Please contact us if you need any assistance in developing a fleet policy that sets out fuel and electricity rates.

HMRC update the AFRs every year on 1st March, 1st June, 1st September and 1st December.

Updates to the AERs are periodic to reflect the cost of electricity.

How do HMRC calculate the Advisory Fuel Rates?

By dividing the fuel price per gallon (in pence) by the relevant MPG.

Rates with effect from 1st March 2022

Engine SizePetrolDieselLPGElectric
Up to 1400cc13PPMN/A8PPM5PPM
Up to 1600ccN/A11PPMN/A5PPM
1401cc to 2000cc15PPMN/A10PPM5PPM
1601cc to 2000ccN/A13PPMN/A5PPM
Over 2000cc22PPM16PPM15PPM5PPM

Rates with effect from 1st December 2021

Engine SizePetrolDieselLPGElectric
Up to 1400cc13PPMN/A9PPM5PPM
Up to 1600ccN/A11PPMN/A5PPM
1401cc to 2000cc15PPMN/A10PPM5PPM
1601cc to 2000ccN/A13PPMN/A5PPM
Over 2000cc22PPM16PPM15PPM5PPM

Rates with effect from 1st September 2021

Engine SizePetrolDieselLPGElectric
1600cc or less121074
1601cc to 2000cc141284
Over 2000cc2015124

Rates with effect from 1st June 2021

Engine SizePetrolDieselLPGElectric
1600cc or less11984
1601cc to 2000cc131194
Over 2000cc1913144

Rates with effect from 1st March 2021

Engine SizePetrolDieselLPGElectric
1600cc or less10974
1601cc to 2000cc121184
Over 2000cc1812124

Rates with effect from 1st December 2020

Engine SizePetrolDieselLPGElectric
1600cc or less10874
1601cc to 2000cc111084
Over 2000cc1712124

Rates with effect from 1st September 2020

Engine SizePetrolDieselLPGElectric
1600cc or less10874
1601cc to 2000cc121084
Over 2000cc1712124

Rates with effect from 1st June 2020

Engine SizePetrolDieselLPGElectric
1600cc or less10864
1601cc to 2000cc12984
Over 2000cc1712114

Rates with effect from 1st March 2020

Engine SizePetrolDieselLPGElectric
1600cc or less12984
1601cc to 2000cc1411104
Over 2000cc2013144