Employers can find the rates on the HMRC website at http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm but this site keeps a record of current and past rates at http://www.comcar.co.uk/afrs/

Use of AFRs (Advisory Fuel Rates)

AFRs can be used to negotiate dispensations for mileage payments for business travel in company cars.

They are meant to reflect actual average fuel costs at the time they are set and save time for both employers and HMRC by setting out some figures that can be used in the majority of cases. They give employers more certainty about what the mileage rates that they choose to apply mean for tax and National Insurance contributions (NICs).

The rates only apply 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 are advisory only.