- New Advisory Fuel Rates announced
- Latest rates come into effect on March 1, 2016
- Petrol and diesel rates drop, but fewer changes for LPG
Her Majesty’s Revenue and Customs (HMRC) has released the latest Advisory Fuel Rates (AFRs) which will come into effect from March 1.
Petrol cars of all sizes will see rates reduce by 1ppl from the last quarter, as have diesel engines under 2-litres. Larger diesels are down by 2ppl.
LPG engines between 1.4-litres and 2-litres are down by 1ppl, but all others are unchanged.
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.
The new rates are as follows:
1,400cc or less - 10p per mile (down by 1p)
1,401-2,000cc - 12p per mile (down by 1p)
Over 2,000cc - 19p per mile (down by 1p)
1,600cc or less - 8p per mile (down by 1p)
1,601-2,000cc - 10p per mile (down by 1p)
Over 2,000cc - 11p per mile (down by 2p)
1,400cc or less - 7p per mile (no change)
1,401-2,000cc - 8p per mile (down 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 March 1. The next new rates will be announced before June 1 this year.