Advisory fuel rates update

HMRC has published the latest advisory fuel rates (AFR) for company car users, which see mileage rates increase by at least 1p for all petrol and diesel vehicles.

Effective from 1 September 2021, the AFR for petrol and diesel vehicles with engines of 1400-2000cc has increased by 1p, while 2000cc diesel vehicles will see a 2p increase to 15p per mile.

The previous rates, effective from 1 June 2021, can be used for up to one month from the date the new rates apply.

The new rates from September 2021 are:

Engine size Petrol (per mile) LPG (per mile)
1400c or less 12p 7p
1401cc to 2000cc 14p 8p
Over 2000cc 20p  12p

Engine size Diesel (per mile)
1600cc or less 10p
1601cc to 2000cc 12p
Over 2000cc 15p

These rates only apply to employees using a company car to either reimburse them for business travel in the car or when an employee needs to repay the cost of fuel used for private travel.

The AFR will be updated next on 1 December 2021.

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