HMRC has released the latest Advisory Fuel Rates (AFRs)

04th Mar 2021

HMRC has published new Advisory Fuel Rates (AFRs) effective from Monday (March 1, 2021) for company car drivers claiming back fuel costs from their employer.

There are increases to both the petrol and diesel AFR pence per mile (PPM) rates (please see the tables below for actual rates) and other changes include:

  • Petrol vehicles up to 1,400cc the rate for remains unchanged
  • The AFR rate for diesel cars above 2,000cc remains unchanged
  • All fuel rates remain unchanged for LPG-powered vehicles
  • 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 

Petrol vehicles

Engine size (cc)    Mean MPG Mean MPG  Fuel price (per litre)  Fuel price (per gallon)  Rate per mile  Advisory fuel rate 
 Up to 1400cc  57.0  52.7   120.5 pence  547.9 pence  10.4 pence  10 pence
 1401 - 2000cc  48.2  44.6  120.5 pence   547.9 pence   12.3 pence  12 pence
 Over 2000cc  32.7  30.3  120.5 pence   547.9 pence   18.1 pence  18 pence


Diesel vehicles

 Engine size (cc)  Mean MPG  Applied MPG  Fuel price (per litre)  Fuel price (per gallon)  Rate per mile  Advisory fuel rate
 Up to 1600cc  71.3  65.9  125.0  568.3  8.6 pence  9 pence
 1601 to 2000cc  57.9  53.4  125.0  568.3  10.6 pence  11 pence
 Over 2000cc  49.8  45.8  125.0  568.3  12.4 pence  12 pence


LPG (liquefied petroleum gas) vehicles 

 Engine size (cc)  Mean MPG  Applied MPG

 Fuel price(per litre)

 Fuel price (per gallon)  Rate per mile  Advisory fuel rate
 Up to 1400cc  45.6  42.2  64.2 pence  291.9 pence  6.9 pence  7 pence
 1401 - 2000cc  38.5  35.7  64.2 pence  291.9 pence  8.2 pence   8 pence
 Over 2000cc  26.2  24.2  64.2 pence  291.9 pence  12.0 pence  12 pence


Hybrid and Electric Vehicles

Since September 2018 the HMRC has produced the Advisory Electricity Rate (AER) for battery electric vehicles. This has been set at 0.04ppm and is published together with the AFRs for petrol, diesel and LPG vehicles. The rate for 2021 is unchanged and remains at 0.04ppm. Plug-in hybrid and hybrid cars continue to be treated as either petrol or diesel models for mileage reimbursement purposes.

You can use the previous rates for up to one month from the date the new rates apply.

 

Contact us

If you would like more information on AFRs, how they apply to company car drivers or to talk to one of our team please use the contact button below or email info.derby@pendragon.uk.com