AFR rates to go up by 1p/mile from next week

HM Revenue and Customs has published the latest advisory fuel rates, due to be implemented from 1 June.

Rates of reimbursement for all diesel models have been increased by 1p per mile, petrol bands have also been increased by 1p per mile, apart from the 1400cc or less category which remains the same at 10p/mile.

HMRC is undertaking the changes as part of its quarterly review. The rates apply only where employers reimburse staff for business travel in their company cars or require them to repay the cost of fuel used for private travel.

The rates apply to all journeys made on or after 1 June until further notice.  However, for one month from the date of change, employers may choose to use either the previous or new rates.

Since March 2011 the rates have been reviewed four times a year. HMRC will no longer consider changing the rates – outside of the four scheduled reviews – if fuel prices fluctuate by more than 5% from the published rates.