CARS - 18.03.2016
advisory fuel rates fall
New rates. HMRC’s advisory fuel rates (AFRs) generally fell from 1 March 2016. However, you can use the old rates until 31 March 2016. The table shows the AFRs from 1 March with the previous rates in brackets.
| Engine size | Petrol p/mile | LPG p/mile | Diesel p/mile |
| Up to 1,400cc | 10p (11p) | 7p (7p) | - |
| 1,400cc to 2,000cc | 12p (13p) | 8p (9p) | - |
| Up to 1,600cc | 8p (9p) | ||
| 1,600cc to 2,000cc | - | - | 10p (11p) |
| Over 2,000cc | 19p (20p) | 13p (13p) | 11p (13p) |
Reimbursed fuel costs. If you pay for fuel that employees use for private journeys in a company car or van and the employee reimburses you at the appropriate AFR, the car/van fuel benefit in kind won’t apply. Also where an employee pays for fuel used for business journeys in their company car or van, their employer can reimburse them at the AFR tax and NI free. Payments above the AFRs count as taxable earnings.
Advisory fuel rates (AFRs) changed on 1 March 2016. Employees who reimburse their employers for fuel used on private journeys in their company cars at the AFR aren’t liable to a benefit in kind charge.
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