If your expense system covers employees who use company vehicles then you need to know about this update. It’s the latest change to the Advisory Fuel Rates (AFR) which are reviewed every quarter in the UK by HM Revenue and Customs (HMRC).
There has only been one change in this latest revision with the rates for engine vehicles over 2000cc increased by one penny for both petrol and LPG. You can find all of the latest rates below:
Advisory Fuel Rates from March 1, 2017
Engine size Petrol LPG
1400cc or less 11p 7p
1401cc to 2000cc 14p 9p
Over 2000cc 22p 14p
Engine size Diesel
1600cc or less 9p
1601cc to 2000cc 11p
Over 2000cc 13p
These rates apply from March 1st, 2017 but HMRC provide some ‘wiggle’ room, allowing the previous rates to be used for a period of one month following the changeover.
The AFR rates only apply to those companies which reimburse employees for business travel in company vehicles, with employees having to repay any fuel costs for private travel.
For employees who use their own private vehicles for business travel, they are covered by Mileage Allowance Payments (MAPs). You can find more information, here.
Webexpenses provides a smarter way to manage and monitor employee expenses and business travel. Find out more, here.