Company Cars – Advisory Fuel Rates from 1 June 2014
HM Revenue and Customs (HMRC) have left petrol and diesel Advisory Fuel Rates (AFRs) at the same level with a change to the rate for LPG vehicles with an engine size greater than 2,000cc, which has decreased from 17p to 16p cancelling out the 1p increase implemented from 1 March 2014.
The latest rates, which organisations use to reimburse drivers for fuel used on business journeys, apply to all journeys on or after 1 June 2014.
The new company cars business mileage rates are listed below:
|1400cc or less||14p||9p|
|1401cc to 2000cc||16p||11p|
|1600cc or less||12p|
|1601cc to 2000cc||14p|
Hybrid company cars are treated as either petrol or diesel cars for this purpose.
For all current PEAK users the PEAK mileage system has already been updated with the new HMRC rates, so when the new rates come into effect on the 1st they will automatically change.
Rates are revised quarterly so check back for the next update which will take effect on 1 September 2014.