HMRC Advisory Fuel Rates

25th February 2021

HMRC have issued the new advisory fuel rates (AFR) which come into effect from 1st March 2021.

 

They have increased by 1p per mile for petrol and diesel vehicles with engines of 1400-2000cc reflecting a small increase in fuel prices over the last quarter.

 

The advisory electricity rate for fully electric cars remains unchanged at 4p per mile.

 

These new rates should only be used when reimbursing employees for business travel in their company cars or when employees repay the cost of fuel for private travel.

 

HMRC will not require employers to apply for a dispensation to cover payments made if these fuel rates are used.

 

Advisory fuel rates from 1st March 2021

 

 

Engine size Petrol – amount per mile LPG – amount per mile Engine size Diesel – amount per mile
1400cc or less 10p 7p 1600cc or less 9p
1401cc to 2000cc 12p 8p 1601cc to 2000cc 11p
Over 2000cc 18p 12p Over 2000cc 12p

 

 

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