Advisory fuel rates update

26 Aug 21

HMRC has published the latest advisory fuel rates (AFR) for company car users, which see mileage rates increase by at least 1p for all petrol and diesel vehicles.

Effective from 1 September 2021, the AFR for petrol and diesel vehicles with engines of 1400-2000cc has increased by 1p, while 2000cc diesel vehicles will see a 2p increase to 15p per mile.

The previous rates, effective from 1 June 2021, can be used for up to one month from the date the new rates apply.

The new rates from September 2021 are:

Engine sizePetrol (per mile)LPG (per mile)
1400c or less12p7p
1401cc to 2000cc14p8p
Over 2000cc20p 12p
Engine sizeDiesel (per mile)
1600cc or less10p
1601cc to 2000cc12p
Over 2000cc15p

These rates only apply to employees using a company car to either reimburse them for business travel in the car or when an employee needs to repay the cost of fuel used for private travel.

The AFR will be updated next on 1 December 2021.

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