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Advisory Fuel Rates (AFR) - June 2021

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Overview of Advisory Fuel Rates (AFR)

HMRC has published the latest advisory fuel rates (AFR) for company car users, effective from 1 June 2021, increasing mileage rates by 1p for all petrol vehicles.

The advisory fuel rates that apply from 1 June 2021 have been increased by 1p per mile for petrol and diesel vehicles with engines of 1400-2000cc reflecting a slight increase in fuel prices over the last quarter. The previous rates, effective March 2021, can be used for up to one month from the date the new rates apply.

When are Advisory Fuel rates (AFR) applied?

The rates only apply in the following circumstances:

  • reimburse employees for business travel in their company cars; or
  • require employees to repay the cost of fuel used for private travel.

These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.

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.

Advisory Fuel rates (AFR) for electricity cars

The advisory electricity rate for fully electric cars is unchanged at 4p per mile. Electricity is not a fuel for car fuel benefit purposes.

Advisory fuel rates from 1 June 2021

Engine size

Petrol – amount per mile

LPG – amount per mile

1400cc or less

11p

8p

1401cc to 2000cc

13p

9p

Over 2000cc

19p

14p

Engine size

Diesel – amount per mile

1600cc or less

9p

1601cc to 2000cc

11p

Over 2000cc

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.

Advisory fuel rates
Advisory fuel rates

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