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New December AFR Rates announced

  • Latest Advisory Fuel Rates published
  • Find out how much you should be claiming per mile
  • Apply to journeys on or after 1st December

HM Revenue and Customs (HMRC) has released the latest Advisory Fuel Rates (AFRs) which will come into effect from 1st December 2014.

The main news is a 1p fall in rates for larger diesel engines at or over 2-litres in capacity which can now be claimed at 16p per mile. Petrol engines have also seen a reduction, 1.4-litre engines fall from 14p to 13p per mile and those 2-litre and larger are now to be claimed at 23p per mile (down 1p).

AFRs are recommended guidelines for businesses to set for their drivers when claiming expenses for business miles. It is not mandatory to follow the guidelines but the majority of companies do.

You can still use the previous rates for up to 1 month from the date the new rates apply.

These rates are reviewed quarterly and the latest AFRs apply to journeys made on or after December 1. For one month from the date of the change employers may use either the previous or new current rates as they choose.

Hybrid cars are treated as either petrol or diesel cars for this purpose.

The new rates are as follows:


1,400cc or less - 13p (down by 1p)

1,401-2,000cc - 16p (no change)

Over 2,000cc - 23p (down by 1p)


1,600cc or less - 11p (no change)

1,601-2,000cc - 13p (no change)

Over 2,000cc - 16p (down by 1p)


1,400cc or less - 9p (no change)

1,401-2,000cc - 11p (no change)

Over 2,000cc - 16p (no change)