AFRs Table

Advisory fuel rates (AFRs) can be used by employers to calculate fuel costs for tax purposes. They may apply to company cars when an employee is required to repay the cost of fuel used for private travel or when the company reimburses an employee for business mileage. The rates are not binding so less can be paid, but detailed documentary evidence of actual fuel costs will be required if the employer wishes to pay a higher rate and claim the full costs against tax.

1. VAT
Companies may be able to reclaim the VAT element of business fuel costs, provided there are mileage records and VAT receipts to cover the expenditure.
2. Income tax and NI
No tax or NICs will arise where an employee is reimbursed at less than or equal to the AFR on business mileage.

View current rates from: 01 Jun 2012 01 Mar 2012 01 Dec 2011 01 Sep 2011 01 Jun 2011 01 Mar 2011 01 Dec 2010 01 Jun 2010