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

Petrol rates have been reduced, after the average cost of the fuel fell from 174.2-164.4p per litre (ppl), while diesel AFRs remain unchanged, despite the average cost of a litre of diesel increasing from 185.2-188.9ppl.

As a result, the rates for petrol company cars have all been cut, with the AFR for petrol vehicles up to 1,400cc now 14p per mile (ppm), down from 15ppm. Petrol vehicles with an engine sized from 1,401-2,000cc also decrease by 1ppm, from 18-17ppm.

The AFR for vehicles with an engine over 2,000cc, which rose by 2ppm in September, from 25-27ppm, have now been cut by 1ppm to 26ppm from December 1. HMRC, however, has maintained the rates set in September for diesel vehicles.

The diesel rate for company cars with a engine size of more than 2,000cc remains at 22ppm; the AFR for diesel cars up to 1,600cc is unchanged at 14ppm, as is the rate for diesel vehicles with an engine from 1,601-2,000cc, which stays at 17ppm.

Meanwhile, the LPG reimbursement rates have all been increased.LPG vehicles up to 1,400cc increases by 1ppm, from 9-10ppm, and from 11-12ppm for vehicles with an engine size of 1,401-2,000cc. LPG vehicles with an engine greater than 2,000cc also see a 1ppm increase, from 17-18ppm.

Hybrid cars are treated as either petrol or diesel cars for AFR purposes.

The advisory electricity rate (AER) for pure electric vehicles has been increased by 3ppm, from 5-8ppm.

If you need advise, help or support please contact our friendly team here at CRASL at info@crasl.co.uk