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 Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| Up to 1400cc | 13PPM | N/A | 8PPM | 5PPM |
| Up to 1600cc | N/A | 11PPM | N/A | 5PPM |
| 1401cc to 2000cc | 15PPM | N/A | 10PPM | 5PPM |
| 1601cc to 2000cc | N/A | 13PPM | N/A | 5PPM |
| Over 2000cc | 22PPM | 16PPM | 15PPM | 5PPM |
Rates with effect from 1st December 2021
| Engine Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| Up to 1400cc | 13PPM | N/A | 9PPM | 5PPM |
| Up to 1600cc | N/A | 11PPM | N/A | 5PPM |
| 1401cc to 2000cc | 15PPM | N/A | 10PPM | 5PPM |
| 1601cc to 2000cc | N/A | 13PPM | N/A | 5PPM |
| Over 2000cc | 22PPM | 16PPM | 15PPM | 5PPM |
Rates with effect from 1st September 2021
| Engine Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| 1600cc or less | 12 | 10 | 7 | 4 |
| 1601cc to 2000cc | 14 | 12 | 8 | 4 |
| Over 2000cc | 20 | 15 | 12 | 4 |
Rates with effect from 1st June 2021
| Engine Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| 1600cc or less | 11 | 9 | 8 | 4 |
| 1601cc to 2000cc | 13 | 11 | 9 | 4 |
| Over 2000cc | 19 | 13 | 14 | 4 |
Rates with effect from 1st March 2021
| Engine Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| 1600cc or less | 10 | 9 | 7 | 4 |
| 1601cc to 2000cc | 12 | 11 | 8 | 4 |
| Over 2000cc | 18 | 12 | 12 | 4 |
Rates with effect from 1st December 2020
| Engine Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| 1600cc or less | 10 | 8 | 7 | 4 |
| 1601cc to 2000cc | 11 | 10 | 8 | 4 |
| Over 2000cc | 17 | 12 | 12 | 4 |
Rates with effect from 1st September 2020
| Engine Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| 1600cc or less | 10 | 8 | 7 | 4 |
| 1601cc to 2000cc | 12 | 10 | 8 | 4 |
| Over 2000cc | 17 | 12 | 12 | 4 |
Rates with effect from 1st June 2020
| Engine Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| 1600cc or less | 10 | 8 | 6 | 4 |
| 1601cc to 2000cc | 12 | 9 | 8 | 4 |
| Over 2000cc | 17 | 12 | 11 | 4 |
Rates with effect from 1st March 2020
| Engine Size | Petrol | Diesel | LPG | Electric |
|---|---|---|---|---|
| 1600cc or less | 12 | 9 | 8 | 4 |
| 1601cc to 2000cc | 14 | 11 | 10 | 4 |
| Over 2000cc | 20 | 13 | 14 | 4 |