The advisory fuel rates for petrol, diesel and electric cars have been released by HMRC – with the changes kicking in from the start of March.
New HMRC fuel rates launching this week will impact millions of petrol, diesel and electric car drivers. The advisory fuel rates for petrol, diesel and electric cars have been released by HMRC – with the changes kicking in from the start of March.
AFRs for diesel company cars have stayed the same apart from a penny increase to the rate for a car with an engine size of up to 1,600cc, from 11-12ppm. AFR for diesel vehicles with an engine from 1,601-2,000cc and more than 2,000cc remain the same at 13ppm and 17ppm, respectively.
The AFR for petrol vehicles with an engine size from 1,401-2,000cc has increased from 14ppm to 15ppm. The AFR for petrol vehicles up to 1,400cc remains at 12ppm and the rate for petrol cars with an engine more than 2,000cc stays at 23ppm.
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The advisory electricity rate (AER), used by many electric company car drivers to claim back fuel costs from their employer, remains unchanged at 7ppm. HMRC has published that the current AER is based on an electrical efficiency of 3.57 miles per kilowatt hour and a domestic electricity cost of 25.24 pence per kilowatt hour.
The rates for LPG vehicles also remain unchanged, staying at 11ppm for vehicles up to 1,400cc, 13ppm for vehicles with an engine size of 1,401-2,000cc, and at 21ppm for vehicles with an engine greater than 2,000cc.
Responding to the new rates, one fumed: “Absolute disgrace once again from this government. Absolutely out of touch with the day to day functions of the normal people in this country. Fuel at rates that this country has never seen before and they offer 1ppm on top of the measly amount they gave 3 months ago. Thankfully I work for a company who values their employee’s and has agreed to pay the mobile staff 1.5x the government figures for business miles covered.”
A second sniped: “This Government get more clueless day by day. they want net zero and transition to electric vehicles. Ofgem raise the price cap on electricity charges yet the reimbursement for electric vehicles stays the same. How does that work? In addition we have the massive underpayments to contend with on the occasions we have to use public charging and are massively out of pocket. Factor in the expensive car supplement for road tax from April and you’ve guessed it……diesel and petrol cars suddenly look like a much better option. Meanwhile captain clueless and his cronies are jetting all over the world at our expense using aviation fuel!”
Cowgills Accountants said: “Provided they have kept sufficient records to show how it has been calculated and can demonstrate that the rate paid does no more than cover the cost of fuel, then there are no tax consequences if this is what the employer chooses to do.”
