New advisory fuel rates

New advisory fuel rates (AFRs) for company car drivers came into force on 01 December 2019.  HM Revenue & Customs reviews the ARFs on a quarterly basis based on fuel price data.  The rates enable company car drivers to claim business mileage covering fuel only and to reimburse private mileage if this has been provided by the employer via a fuel card or corporate credit card.  The new rates are:


The advisory fuel rate (AFR) is mainly of use in two situations.  Firstly, where an employee personally pays for fuel used in their company car or van and claims reimbursement from their employer for business mileage.  Secondly, where the business pays for all fuel, e.g. via a company fuel card or account at a petrol station, and requires the employee to reimburse it for the cost of their non-business mileage.

No tax or NI for employee

Using the AFR means a company doesn’t need to work out the actual cost of fuel per mile for each of its company vehicles.  It can reimburse their employees safe in the knowledge that HM Revenue & Customs will accept that the payment doesn’t trigger a benefit-in-kind charge.

If you would like to discuss your car policy, please contact us on 01752 752210.


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