Company cars: Advisory Fuel Rates (AFRs)

HOME

⟩

Services

⟩

Business Tax

⟩

Company Cars : Advisory Fuel Rates (AFRs)

30th May 2019

Use AFR’s to work out mileage costs if you provide company cars to your employees.

These rates apply from 1 June 2019.

Advisory fuel rates from 1 June 2019

Engine size	Petrol	LPG – amount per mile
1400cc or less	12p	8p
1401cc to 2000cc	15p	9p
Over 2000cc	22p	14p

Engine size	Diesel – amount per mile
1600cc or less	10p
1601cc to 2000cc	12p
Over 2000cc	14p

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

Advisory Electricity Rate

The Advisory Electricity Rate for fully electric cars is 4 pence per mile.

Electricity is not a fuel for car fuel benefit purposes.

Other items in Blogs

Lucy Bayliss

12th November 2019 Finance charges for landlords – The knock on effects

Since 6 April 2017, changes are being gradually introduced to restrict the relief available to landlords in respect of their finance costs. Under the old rules, the interest element of the mortgage payments was 100% allowable for income tax purposes. However, this is gradually being replaced with a 20% tax reducer instead. The timetable…

Barbara Nicholas

1st November 2019 Brexit halts Budget

With all the uncertainty over Brexit, we waited a long time to learn the date of Sajid Javid’s first Budget. Finally we learnt this was to take place on 6th November, amid great excitement at muted suggestions about the possible abolition of Inheritance Tax and radical changes to stamp duty. The bubble has…

Vanessa Pearson

28th October 2019 Off-Payroll Worker Tax Rules: Be prepared!

Knowledge based contractors working in the private sector will hopefully now be well aware that, subject to any possible Government last minute change of heart, new tax rules are coming next April. For many, who are not currently following IR35 rules, this will mean a large increase in the tax they pay; perhaps tens of…

Matilda Mawson

24th October 2019 I’ve got 99 Problems but my Tax Return isn’t 1!

There are now only 99 days before the tax return filing deadline of 31 January 2020. Do not delay – file it today! Not sure if you need to file a tax return? HMRC have a questionnaire that only takes a few minutes and will check whether any of your income or gains will require…

Jeannette Hume

24th October 2019 R&D Tax Claims: HMRC finally go-digital.

In February 2019 HMRC introduced an online tool to submit Research & Development tax relief claims (both SME and RDEC claims). It is still necessary to make the claim on a company tax return (form CT600), but the accompanying detailed R&D project information can (but does not have to) now be submitted by completion of…

Ruth Pearson

17th October 2019 Is it too early to talk about Christmas!

In December 2018 HMRC wrote to employers to advise of a temporary easement on reporting PAYE information in real time. This was for a number of reasons, one of which could be due to businesses closing over the Christmas period and therefore having to pay staff earlier than normal. HMRC have received feedback from…

MENU

Blog Entry

Company Cars : Advisory Fuel Rates (AFRs)