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HMRC PUBLISHES NEW ADVISORY FUEL RATES

HMRC has just published the latest advisory fuel rates (AFR) for company car users, which see mileage rates increase by at least 1p for all petrol and diesel vehicles. The new rates will take effect from 1 September 2021. The AFR for petrol and diesel vehicles with engines of 1400-2000cc has increased by 1p, while 2000cc diesel vehicles will see a 2p increase to 15p per mile.

Afford Bond Director, Paul Edwards said: "The previous company car rates, which were effective from 1 June 2021, can be used for up to one month from the date the new rates apply, which allows enough time to make administration adjustments where required."

The new rates from September 2021 are:

Engine size

Engine size Petrol (per mile) LPG (per mile)
1400c or less 12p 7p
1401cc to 2000cc 14p 8p
Over 2000cc 20p 12p
Engine size Diesel (per mile)
1600cc or less 10p
1601cc to 2000cc 12p
Over 2000cc 15p

These rates only apply to employees using a company car to either reimburse them for business travel in the car or when an employee needs to repay the cost of fuel used for private travel.

If you need help when providing benefits-in-kind for your employees, talk to us on Nantwich Accountants T: 01270 623731 or Wilmslow Accountant T: 01625 416380 - or email Paul.Edwards@affordbond.com