Drivers claiming AFR for business mileage reimbursement will claim less if they are driving a petrol or diesel car with an engine smaller than 2.0-litres from June 1.
HMRC announced on May 28 that the reimbursement rate for petrol and diesel engines up to 2,000 cc would be cut by a penny per mile. The rate for diesel engines larger than 2,000cc remains unchanged although any petrol engine larger than 1,400cc would see a reduced reimbursement rate.
All LPG payments remain unchanged.
The new rates will come into effect from June 1, 2013.
AFR payments (previous figure in brackets)
|1,400cc or less||15p||10p|
|Over 2,000cc||25p (26p)||18p|
|1,600cc or less||12p (13p)|