Advisory Fuel Rates from 1st March 2015
HMRC has made some minor changes to its advisory fuel rates (AFR)s . These apply from 1st March, but the tax man is happy for employers to continue using the old rates until 31st March .
Using AFRs: Although not mandatory, Advisory Fuel Rates (AFR) can be used to avoid potential tax charges that can arise where:
- your business pays for fuel put into a company car or van by a director or employee, who uses the vehicle for private journeys (this includes travel from home to their normal place of work); or
- an employee meets the cost of fuel used in their company car or van and you pay them an allowance to cover any of this which is used for business travel.
In both situations, where the rate of reimbursement is made at the AFR, the tax man accepts no fuel scale tax charge arises on the employee or director.
Engine size
Up to 1400cc: Petrol 11p (prev. 13p) / LPG 8p (prev. 9p)
Up to 1600cc: Diesel 9p (prev. 11p)
1401-2000cc: Petrol 13p (prev. 16p) / LPG 10p (prev.11p)
1601-2000cc: Diesel 11p (prev. 13p)
Over 2000cc: Petrol 20p (prev. 23p) / LPG 14p (prev. 16p) / Diesel 14p (prev. 17p)
TIP – Employees can reimburse their employers at these rates to avoid a benefit in kind charge on fuel they’ve used for private journeys in a company car.
HMRC has made some minor changes to its advisory fuel rates (AFR)s . These apply from 1st March, but the tax man is happy for employers to continue using the old rates until 31st March .
Using AFRs: Although not mandatory, Advisory Fuel Rates (AFR) can be used to avoid potential tax charges that can arise where:
- your business pays for fuel put into a company car or van by a director or employee, who uses the vehicle for private journeys (this includes travel from home to their normal place of work); or
- an employee meets the cost of fuel used in their company car or van and you pay them an allowance to cover any of this which is used for business travel.
In both situations, where the rate of reimbursement is made at the AFR, the tax man accepts no fuel scale tax charge arises on the employee or director.
Engine size
Up to 1400cc: Petrol 11p (prev. 13p) / LPG 8p (prev. 9p)
Up to 1600cc: Diesel 9p (prev. 11p)
1401-2000cc: Petrol 13p (prev. 16p) / LPG 10p (prev.11p)
1601-2000cc: Diesel 11p (prev. 13p)
Over 2000cc: Petrol 20p (prev. 23p) / LPG 14p (prev. 16p) / Diesel 14p (prev. 17p)
TIP – Employees can reimburse their employers at these rates to avoid a benefit in kind charge on fuel they’ve used for private journeys in a company car.
