HMRC reveals latest AFRs
24 February 2015
Author: Daniel Puddicombe
HM Revenue and Customs has published the latest advisory fuel rates, due to be implemented from 1 March.
The sub-1600cc rate of repayment for diesel vehicles has been reduced to 9p, down by 2 pence on the current rate, while the 1601-2000cc band has fallen by 2ppm to 11p, and the 2000cc and over category has fallen to 14p.
Petrol-wise, the sub-1400cc band has fallen to 11p from 13p, the 1401-2000cc segment remains the same at 13p and the 2000cc section falls by 3p to 20ppm.
HMRC made the reduction as part of its quarterly review. The rates apply only where employers reimburse employees for business travel in their company cars or require employees to repay the cost of fuel used for private travel.
The rates apply to all journeys on or after 1 March 2015 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose.
Since March 2011 the rates have been reviewed four times a year. HMRC will no longer consider changing the rates if fuel prices fluctuate by 5% from the published rates.