HMRC has released the latest Advisory Fuel Rates (AFRs)
25th Feb 2022
HMRC has published new Advisory Fuel Rates (AFRs) effective from Tuesday (March 1, 2021) for company car drivers claiming back fuel costs from their employer.
The new AFRs see petrol and diesel rates remain the same across all three engine size ranges while LPG-fuelled vehicles, see the rate for engines of 1400cc or less, go up by 1ppm.
Meanwhile, despite rising energy prices, the Advisory Electricity Rate (AER) for reimbursing electric company car mileage remains at 5ppm, following the 25% increase from 4ppm in the 1 December 2021 rate. Hybrid cars are treated as either petrol or diesel cars for AFR purposes.
Please see the tables below for actual rates.
Petrol 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 | 54.2 | 52.7 | 147.0 pence | 668.0 pence | 12.7 pence | 13 pence |
| 1401 - 2000cc | 46.1 | 44.9 | 147.0 pence | 668.0 pence | 14.9 pence | 15 pence |
| Over 2000cc | 30.8 | 30.0 | 147.0 pence | 668.0 pence | 22.3 pence | 22 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 | 65.4 | 63.6 | 151.1 pence | 686.9 pence | 10.8 pence | 11 pence |
| 1601 to 2000cc | 51.3 | 51.3 | 151.1 pence | 686.9 pence | 13.4 pence | 13 pence |
| Over 2000cc | 43.5 | 42.1 | 151.1 pence | 686.9 pence | 16.3 pence | 16 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 | 43.3 | 42.2 | 78.2 pence | 355.5 pence | 8.4pence | 8 pence |
| 1401 - 2000cc | 36.9 | 35.9 | 78.2 pence | 355.5 pence | 9.9 pence | 10 pence |
| Over 2000cc | 24.7 | 24.0 | 78.2 pence | 355.5 pence | 14.8 pence | 15 pence |
Hybrid and Electric Vehicles
The Advisory Electricity Rate (AER) for reimbursing electric company car mileage remains at 5ppm, following the 25% increase from 4ppm in the 1 December 2021 rate.
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
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