- Latest Advisory Fuel Rates announced
- Will come into effect on 1 June 2016
- Most categories see a 1p per mile rise
Her Majesty’s Revenue and Customs (HMRC) has released the latest Advisory Fuel Rates (AFRs) which will come into effect from 1 June 2016.
Many categories see a 1p rise
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.
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.
Of the nine bands, four remain as before but five see rises of a penny per mile, negating the drop of the same amount which came into effect in March.
The new rates are as follows:
1,400cc or less - 10p per mile (no change)
1,401-2,000cc - 13p per mile (up by 1p)
Over 2,000cc - 20p per mile (up by 1p)
1,600cc or less - 9p per mile (up by 1p)
1,601-2,000cc - 10p per mile (no change)
Over 2,000cc - 12p per mile (up by 2p)
1,400cc or less - 7p per mile (no change)
1,401-2,000cc - 9p per mile (up by 1p)
Over 2,000cc - 13p per mile (no change)
These rates are reviewed quarterly and the latest AFRs apply to journeys made on or after 1 June.
The next new rates will be announced before 1 September this year.