HMRC has responded to the recent increase in fuel prices, by increasing the petrol and diesel Advisory Fuel Rates (AFRs) for company car drivers claiming back fuel costs from their employer.
The diesel rate for company cars with a engine size of more than 2,000cc increases by 2ppm, from 13ppm to 15ppm. The AFR rates for diesel cars up to 1,600cc and from 1,601-2,000cc are also increased, by 1ppm, to 10ppm and 12ppm, respectively.
For petrol company cars, all three rates have increased by 1ppm, meaning the AFR rate for vehicles up to 1,400cc is 12ppm, while cars with an engine of 1,401-2,000cc and more than 2,000cc have a rate of 14ppm and 20ppm, respectively.
All the increased rates will be effective from Wednesday (1st September).
Hybrid cars are treated as either petrol or diesel cars for AFR purposes.
The advisory electricity rate (AER) for plug-in cars remains unchanged at 4ppm.
