Fuel rates for Company Cars, including Salary Sacrifice Schemes Explained
The HMRC has a different mileage reimbursement rate for company cars called the Advisory Fuel Rate (AFR).The rates are considerably lower than the AMAP rates used for drivers using their own vehicles on company business as the AMAP rate takes into consideration wear and tear, maintenance and insurance costs the driver pays for their private vehicle.
There are two key difference with the AFR and the AMAP rate, firstly the AFR is revised on a quarterly basis to reflect the price of fuel at the pump and, secondly, the rate is linked to the engine size of the car (and subsequent mean MPG) – the larger the car’s engine, the higher the rate.
HMRC review the AFR rates:
- 01 March
- 01 June
- 01 September
- 01 December
The tables below shows the AFR rates valid from 1st September 2024.
Engine size Petrol — rate per mile
- 1400cc or less = 13 pence
- 1401cc to 2000cc = 15 pence
- Over 2000cc = 24 pence
LPG — rate per mile
1400cc or less = 11 pence
1401cc to 2000cc = 13 pence
Over 2000cc = 21 pence
Engine size Diesel — rate per mile
- 1600cc or less = 12 pence
- 1601cc to 2000cc = 14 pence
- Over 2000cc = 18 pence
There is currently a flat rate of 7 pence per mile for pure Electric cars, and Hybrid cars follow the same as the petrol or diesel rates
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