New AFRs reveal cuts to most rates

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.