HMRC has released the latest Advisory Fuel Rates (AFRs)

25th Feb 2022

HMRC has published new Advisory Fuel Rates (AFRs) effective from Tuesday (March 1, 2021) for company car drivers claiming back fuel costs from their employer.

The new AFRs see petrol and diesel rates remain the same across all three engine size ranges while LPG-fuelled vehicles, see the rate for engines of 1400cc or less, go up by 1ppm.

Meanwhile, despite rising energy prices, the Advisory Electricity Rate (AER) for reimbursing electric company car mileage remains at 5ppm, following the 25% increase from 4ppm in the 1 December 2021 rate. Hybrid cars are treated as either petrol or diesel cars for AFR purposes.

Please see the tables below for actual rates.


Petrol vehicles

Engine size (cc)    Mean MPG Applied MPG  Fuel price (per litre)  Fuel price (per gallon)  Rate per mile  Advisory fuel rate 
 Up to 1400cc  54.2  52.7   147.0 pence  668.0 pence  12.7 pence  13 pence
 1401 - 2000cc  46.1  44.9  147.0 pence   668.0 pence   14.9 pence  15 pence
 Over 2000cc  30.8  30.0  147.0 pence   668.0 pence   22.3 pence  22 pence


Diesel vehicles

 Engine size (cc)  Mean MPG  Applied MPG  Fuel price (per litre)  Fuel price (per gallon)  Rate per mile  Advisory fuel rate
 Up to 1600cc  65.4  63.6   151.1 pence  686.9 pence  10.8 pence  11 pence
 1601 to 2000cc  51.3  51.3   151.1 pence  686.9 pence  13.4 pence  13 pence
 Over 2000cc  43.5  42.1  151.1 pence  686.9 pence  16.3 pence  16 pence


LPG (liquefied petroleum gas) vehicles 

 Engine size (cc)  Mean MPG  Applied MPG

 Fuel price(per litre)

 Fuel price (per gallon)  Rate per mile  Advisory fuel rate
 Up to 1400cc  43.3  42.2  78.2 pence  355.5 pence  8.4pence  8 pence
 1401 - 2000cc  36.9  35.9  78.2 pence  355.5 pence  9.9 pence   10 pence
 Over 2000cc  24.7  24.0  78.2 pence  355.5 pence  14.8 pence  15 pence


Hybrid and Electric Vehicles

The Advisory Electricity Rate (AER) for reimbursing electric company car mileage remains at 5ppm, following the 25% increase from 4ppm in the 1 December 2021 rate. 

Plug-in hybrid and hybrid cars continue to be treated as either petrol or diesel models for mileage reimbursement purposes.

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

 

Contact us

If you would like more information on AFRs, how they apply to company car drivers or to talk to one of our team please use the contact button below or email info.derby@pendragon.uk.com