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New AFR rates for June 2015 announced

  • HM Revenue and Customs reveals new Advisory Fuel Rates
  • Latest rates come into effect on June 1, 2015
  • Mixed changes but five bands increase by 1ppl

Her Majesty’s Revenue and Customs (HMRC) has released the latest Advisory Fuel Rates (AFRs) which will come into effect from June 1.

AFRs are recommended guidelines for organisations 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.

Following on from a fairly substantial fall in prices in March, some as much as three pence per litre (ppl), the new prices are something of a mixed bag.

All petrol cars up to 1,400cc are now 12ppl, with those over 2,000cc up slightly to 21ppl. Diesels up to 2,000cc are all up by 1ppl, although there’s still a 2ppl difference at the 1,600cc threshold.

Rates for LPG-fueled cars remain unchanged apart from the 1,401cc to 2,000cc band which is down 1ppl.

You can still use the previous rates for up to one month from the date the new rates apply, and hybrid cars are treated as either petrol or diesel cars for this purpose.

The new rates are as follows:

Petrol

1,400cc or less - 12p (up by 1p)

1,401-2,000cc - 14p (up by 1p)

Over 2,000cc - 21p (up by 1p)

Diesel

1,600cc or less - 10p (up by 1p)

1,601-2,000cc - 12p (up by 1p)

Over 2,000cc - 14p (unchanged)

LPG

1,400cc or less - 8p (unchanged)

1,401-2,000cc - 9p (down by 1p)

Over 2,000cc - 14p (unchanged)

These rates are reviewed quarterly and the latest AFRs apply to journeys made on or after June 1. The next new rates will be announced before September 1.