CARS - 16.03.2018

HMRC changes tax-free fuel rates

New rates. HMRC updated its advisory fuel rates (AFRs) from 1 March 2018 onwards. The rates don’t reflect current pump prices, but are worked out using an average for the previous quarter.

Tip. If you don’t think the new AFR is accurate enough, you can work out and use your own rates instead, but keep a good record of how you calculated them in case HMRC asks questions. The table below shows the AFRs from 1 March and those for the previous quarter in brackets.

Engine size Petrol per mile LPG per mile Diesel per mile
Up to 1,400cc 11p (11p) 7p (7p) -
1,401cc to 2,000cc 14p (14p) 8p (9p) -
Up to 1,600cc - - 9p (9p)
1,601cc to 2,000cc - - 11p (11p)
Over 2,000cc 22p (21p) 13p (14p) 13p (13p)

HMRC’s advisory fuel rates changed slightly for some vehicles on 1 March 2018. If you feel the rates aren’t sufficiently accurate you can use your own calculation.

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