The latest quarterly review of advisory fuel rates by HMRC has seen changes to the amounts of fuel costs that company car drivers can claim back from their employer.
The new AFRs, which come into effect on 1st March, see falls in both the petrol and diesel rate, while the amount chargeable for electric vehicles remains unchanged.
Drivers of petrol-fuelled cars with engines of 1400cc or less will be able to claim 13p per mile, compared to 14p between September 2023 and February 2024. Cars with petrol engines of 1401 to 2000cc are rated at 15p a mile (previously 16p) and those of over 2000cc at 24p a mile (26p).
Diesel cars are rated at 12, 14 and 19p respectively, having previously been 13, 15 and 20p and the rates for LPG-fuelled cars haver also been cut to 10, 12 and 18p a mile. The electric rate remains at 9p a mile.
HMRC calculated the rates based on the average cost of fuel during the period, which it recorded as £140.6p per litre for petrol, £149.4p for diesel and 96.5p for LPG.
