AFRs: Current advisory fuel rates for company cars from 1 June 2021

  • AFRs: The latest Advisory Fuel Rates, current from 1 June 2021
  • Most rates increased for this quarter
  • No change in rate for smaller diesel or electric cars

The Government has announced the latest Advisory Fuel Rates (AFRs) taking effect on 1 June 2021.

Most rates have been increased by a penny, apart from small and medium diesel allowances which were increased in the previous quarter.

Electric vehicle rates are unchanged. EVs continue to have a mileage allowance of 4p per mile this quarter; hybrid cars continue to be treated as their equivalent petrol or diesel models, making a long-range plug-in hybrid such as the Toyota RAV4 or Suzuki Across with a 2.5-litre petrol engine particularly cost-effective when reclaiming mileage.

Find out more about AFRs in our guide to reclaiming business mileage here.

What are the current advisory fuel rates?

AFRs effective from 1 June 2021 are as follows:

Petrol Advisory Fuel Rates from 1 June 2021

Engine capacity Amount per mile Change since 1 March 2021
Below 1,400cc 11 ppm +1 pence
1,401cc - 2,000cc 13 ppm +1 pence
Over 2,000cc 19 ppm +1 pence

Diesel Advisory Fuel Rates from 1 June 2021

Engine capacity Amount per mile Change since 1 March 2021
Below 1,600cc 9 ppm No change
1,601cc - 2,000cc 11 ppm No change
Over 2,000cc 13 ppm +1 pence

 

LPG Advisory Fuel Rates from 1 June 2021

Engine capacity Amount per mile Change since 1 March 2021
Below 1,400cc 8 ppm +1 pence
1,401cc - 2,000cc 9 ppm +1 pence
Over 2,000cc 13 ppm +1 pence

 

The Advisory Fuel Rates applicable between 1 March 2021 and 31 May 2021 can still be applied to claims up to 30 June 2021.

Most cars have lower rates during this period, so you may want to use the new rates for claiming expenses, and the earlier rates for repaying personal fuel.

Advisory Fuel Rates 1 March 2021 to 31 May 2021

Capacity Petrol Diesel LPG
Small 10 ppm 9 ppm 7 ppm
Medium 12 ppm 11 ppm 8 ppm
Large (over 2.0-litre) 18 ppm 12 ppm 12 ppm

 

Hybrid cars should be treated as either petrol or diesel, as appropriate.

AFRs are reviewed quarterly. You can use the previous rates for up to a month from the date the new ones apply. Older rates are available on the HMRC website.

The next new announcement of Advisory Fuel Rates will be published on 1 September 2021.