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New AFRs reveal cuts to most rates

Date: 28 November 2013   |   Author:

HM Revenue & Customs has announced a new set of Advisory Fuel Rates, used for setting the rate for company car drivers either reclaiming or reimbursing a company for fuel.

As predicted by BusinessCar earlier this week, all the petrol and diesel rates bar the smallest diesel engines come down, with petrol engines of 1400cc or less dropping by a penny and both the bands for larger diesel engines coming down by 2p per mile.

While diesels under 1601cc stay the same, both the larger diesel bands drop by 1p per litre.

The falls come as a result of dropping fuel prices, combined with increasing new car efficiency, the two factors HMRC uses to calculate its rates.

These rates are effective from 1 December 2013, though employers can choose to use the new or old ones until the end of December. They will be reviewed again at the end of February. 


Engine size New rate per mile Movement
1400cc or less 14p -1p
1401cc-2000cc 16p -2p
Over 2000cc 24p -2p
1600cc or less 12p -
1601cc-2000cc 14p -1p
Over 2000cc 17p -1p