Company Car Driver? What fuel rates can you claim?
5th December 2014
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Business Mileage Rates are known as Advisory Fuel Rates (AFR) and from September 1st 2014, the HMRC reduced the rates for small diesel engines (petrol, LPG and diesel engines larger than 2.0-litre remain unchanged).  

The AFR business mileage rates are to be used by company car drivers and the new rates are as follows:  new rates in bold, previous rates in brackets. 



1400cc or less 14p (14p)
1401cc to 2000cc 16p (16p)
Over 2000cc 24p (24p)


1600cc or less 11p (12p)
1601cc to 2000cc 13p (14p)
Over 2000cc 17p (17p)


1400cc or less 9p (9p)
1401cc to 2000cc 11p (11p)
Over 2000cc 16p (16p)


HRMC inform us that AFR business mileage rates are to be used by company car drivers but should not be confused with Approved Mileage Allowance Payments (AMAPS) because these are the tax-free pence-per-mile rates applicable only when drivers use their private cars for business purposes.


The AFR rates only apply when you either:


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


You must not use these rates in any other circumstances. If you use them correctly you will not need to apply for a dispensation to cover the payments you make (HMRC).

If you would like more information about this, give the helpful team at Phillips Accountants a call on 01952 522000

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Mark Luckman

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I champion the best businesses in Telford and Wrekin, businesses recommended by you. If you run a local business or know a really great local business that you think deserves to be known by more local...

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