Company Car Mileage Rates slashed following dramatic reduction in fuel prices
From: Ben Davies
HM Revenue & Customs has recently announced that the advisory fuel rates (AFR), used to reimburse drivers of company cars for business travel, are to be slashed by up to 18%. The new AFR will apply from 1 March 2015 to bring them in line with the reduction to fuel prices seen at the pumps.
The new rates are:
|1400cc or less||11p||8p|
|1401cc to 2000cc||13p||10p|
|1600cc or less||9p|
|1601cc to 2000cc||11p|
You can however use the old rates for up to 1 month from the 1 March.
If you drive a hybrid vehicle then you should use the petrol rates for a petrol hybrid vehicle and the diesel rates for a diesel hybrid vehicle.
The advisory fuel rates are reviewed every quarter by HM Revenue & Customs and are calculated based on the average fuel prices at the time. The latest rates can be found on the HMRC website here.
Where you are not using a company car but your own private car you should instead use the Approved Mileage Allowance payments, known as AMAPs.