HMRC Fuel Rates

Advisory Fuel Rates (AFR’s) should be used to re-imburse business use company car mileage.

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

HMRC review the rates on 1st March, 1st June, 1st September and 1st December.

Rates with effect from 1st December 2020

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

All values are pence per mile.

Hybrid vehicles should be treated as petrol or diesel cars.

HMRC advisory fuel rates should be used to re-imburse business use company car mileage.

Rates with effect from 1st September 2020 – 31st November 2020

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

For business mileage conducted in private vehicles the following rates should be used

From tax year 2011 to 2012 onwardsFirst 10,000 business miles in the tax yearEach business mile over 10,000 in the tax year
Cars and Vans4525
Motor Cycles2424
Bicycles2020

HMRC advisory fuel rates should be used to re-imburse business use company car mileage.

Rates with effect from 1st June 2020 – 31st August 2020

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

HMRC advisory fuel rates should be used to re-imburse business use company car mileage.

Rates with effect from 1st March 2020 – 30th June 2020

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