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