The current AFR rates mean business mileage reimbursement for company car drivers is marginal at best
Business Car Manager: Editor’s Blog
NONE of us can have escaped noticing the high cost of fuel. It’s now so high that it’s bcoming an issue for those company car drivers receiving reimbursement through the Advisory Fuel Rates.
These Advisory Fuel Rates (AFRs) are designed to reimburse company car drivers for business mileage undertaken for their company. But, as Stewart Whyte discusses in his Special Report Business car drivers are subsidising employers on fuel, the AFR rates are starting to move out of kilter with reality.
It was also a question asked in a discussion group I belong to.
So let’s explore this, taking my Audi A6 TDIe as an example on a business journey I did last week. The Audi has a combined economy figure of 53.3mpg, but an actual running average of 43mpg. The Advisory Fuel Rate for a 2.0 diesel is 11p per mile. Here are the maths, starting with the actual running average.
- Audi A6 TDIe
- 200 miles @ 43mpg
- 11p per mile AFR =
