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Advisory fuel rates September 2016

HMRC’s Advisory fuel rates (AFRs) can be used by employers in two situations, both applying where the employee has a company car

Ian     Holloway
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Ian     Holloway
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HMRC’s Advisory fuel rates (AFRs) can be used by employers in two situations, both applying where the employee has a company car:

 

1. To reimburse employees for business travel, or

2. To calculate the amount that employees should repay for any private use of the vehicle

 

AFRs are reviewed quarterly at the start of March, June, September and December and employers can choose to implement them immediately or use the old rate for a further month. The rates from 1 September 2016 are shown below with the previous rate shown in brackets:

 

Petrol

 

• 1400cc or less = 11p (10p)
• 1401 – 2000cc = 13p (no change)
• Over 2000cc = 20p (no change)

 

Diesel

 

• 1600 cc or less = 9p (no change)
• 1601 – 2000cc = 11p (10p)
• Over 2000cc = 13p (12p)

 

LPG

 

• 1400cc or less = 7p (no change)
• 1401 – 2000cc = 9p (no change)
• Over 2000cc = 13p (no change)

 

HMRC documents the adjusted way they calculate these rates based on the following fuel prices:

 

• petrol – 109.3p per litre (496.8p per gallon)
• diesel – 111.0p per litre (504.7p per gallon)
LPG – 57.5p per litre (261.4p per gallon)

 

All of the above information can be verified on the Gov.uk website where it is contained in four separate documents.

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