HMRC advisory fuel rates for company cars from 1st June 2017

By 1st June 2017 June 20th, 2017 Latest News

HMRC has published the latest advisory fuel rates (AFR) for company car users that will come into effective from the beginning of June.

These rates apply from 1 June 2017 and have remained constant (except from petrol cars with engines over 2000c) on the previous quarter rates.

The guidance states that the rates only apply when you either:

  • Reimburse employees for business travel using their company car
  • Require employees to repay the cost of fuel used for private travel
  • You must not use these rates in any other circumstances.

When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A National Insurance to pay.

Engine size 

1400cc or less

1401cc to 2000cc

Over 2000cc

Petrol – amount per mile (Mar 17 rate in brackets)

11p (11p)

14p (14p)

21p (22p)

LPG – amount per mile 

7p (7p)

9p (9p)

14p (14p)

Engine size 

1600cc or less

1601cc to 2000cc

Over 2000cc

Diesel – amount per mile

9p (9p)

11p (11p)

13p (13p)

Hybrid cars are treated as either petrol or diesel cars for this purpose.

HMRC reviews rates quarterly on 1 March, 1 June, 1 September and 1 December.

 For more information, speak to one of our experts today.

Leave a Reply