HMRC has announced a reduction in Advisory Fuel Rates (AFR) that will apply from 1st March 2015.
AFRs are updated four times a year and only apply to employees who use company cars. Employers use the rates to reimburse business fuel costs to company car drivers.
Previous rates can be used for up to a maximum of one month after the new rates come into force. Hybrid cars can be classed as petrol or diesel for AFR purposes and the rates should not be used by vans.
Advisory Fuel Rates from 1st March 2015:
|1400cc or less
|1401cc to 2000cc
|1600cc or less
|1601cc to 2000cc