HMRC Advisory Fuel Rates
25th February 2021HMRC 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 |
Disclaimer - All information in this post was correct at time of writing.
