HMRC has released its latest advisory fuel rates (AFRs), to come into force from June 1.
There are three changes: a 1 pence per mile increase for LPG vehicles between 1,401cc and 2,000cc, and for LPG vehicles above 2,000cc. The rate for diesel cars with an engine size of 1,600cc or less also increases by 1ppm, from 9ppm to 10ppm
All other rates are unchanged.
Very true. I have recently done some actual cost fuel calculations and our sub 1,600cc diesel engine cars range from 9.1p to 11.1p per mile. Arguably it could be said that the 11.1p per mile driver has an improvement target of 2p per mile but in their defence they are driving in London and the South East whereas the more economical one was driving in the Northwest M6 corridor. So London drivers who pay for and reclaim their business fuel are subsidising their businesses if they use AFR rates, whereas the other driver potentially now makes a small profit. But there is always the actual cost calculation that can be used to reimburse drivers instead, as long as it can be demonstrated.
Totally agree! am I just supposed to absorb the loss from my salary for the good of the company? What with this and the ever rising BIK costs, the vehicle emission rating fiasco all costing me more to do the same days work... Perhaps we should have a national 'fleet strike' day? see how well the country functions without us all out there! When did hammering business drivers become fair game for stuffing the treasury?
Current average diesel cost is £1.32ltr and 1600-2000cc reimbursement is 11p. June 2015 - Aug 2015 diesel price maxed at £121.2 with advisory rate 12p. Sept 2014- Nov 2014 diesel price maxed at £1.32.8 with advisory rate 13p. I this back of a fag packet calculations from HMRC because I'm having to knock it out of gear downhill :(
Doug - 22/05/2018 13:00
Diesel has gone up nearly 10p a litre since they last changed the rate for 1600 - 2000cc... a lot of people atre having to pay through the nose for the dubious privilege of having to drive as part of their job. Whatever formula they aare using to calculate these rates is clearly very flawed indeed.