New company car fuel rates effective today
The following new advisory fuel rates, often referred to by HM Revenue & Customs (HMRC) as AFRs, apply to journeys undertaken on and after 1 June 2010 (the rates from 1 December 2009 are in brackets). Advisory fuel rates are provided by HMRC for employers, if they choose, to reimburse their employees for business travel in company cars, or to require employees to reimburse the cost of fuel used for private travel in a company car without attracting a fuel benefit charge.
The fuel benefit charge multiplier for 2010/11 is £18,000. The actual charge is determined by multiplying this figure by the CO2 emissions’ percentage applicable to the car.
As HMRC no longer gives a month’s notice of AFR changes the old rates can be used for up to a month without HMRC deeming, for example, that private fuel has been provided as full reimbursement has not taken place. It is however vital that employers ensure that expenses systems are updated by 30th June so that these new rates are in place for private mileage reimbursement at the very latest from 1st July.
| Engine size | Petrol | Diesel | LPG |
|---|---|---|---|
| Up to and including 1,400cc | 12p (11p) | 11p (11p) | 8p (7p) |
| 1,401cc to 2,000cc | 15p (14p) | 11p (11p) | 10p (8p) |
| Over 2,000cc | 21p (20p) | 16p (14p) | 14p (12p) |
These latest rates are based on prices per litre of 119.9p (petrol), 121.9p (diesel) and 65.4p (LPG). For the purpose of these rates, HMRC treats petrol-hybrid cars as petrol cars.
