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 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 |
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 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 |
For business mileage conducted in private vehicles the following rates should be used
| From tax year 2011 to 2012 onwards | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
|---|---|---|
| Cars and Vans | 45 | 25 |
| Motor Cycles | 24 | 24 |
| Bicycles | 20 | 20 |
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 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 |
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 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 |