FALLING pump prices have seen HMRC cut company car mileage fuel rates across three of the six petrol and diesel categories.
The company car mileage fuel rates, known as advisory fuel rates (AFR), have been cut by 1p for diesel cars with engines larger than 2,000cc and for petrol vehicles with engines over 2,000cc and those with motors of 1,400cc and smaller effective from 1 December. All other categories remain unchanged.
HMRC reviews the AFR every quarter basing its calculation this time on average fuel prices on one day in November
At least company car drivers with the most frugal sub 2.0-litre diesel range that were singled out for a rate cut in September get to breath easier because the rate remains the same this time.
AFR is used to claim back business mileage in company cars or to repay private mileage if fuel is provided by the company so as to avoid car fuel benefit tax.
HMRC reviews the AFR every quarter basing its calculation this time on average fuel prices on one day in November from the Department of Energy and Climate Change and LPG average price quoted on the AA website.
The new company car business mileage rates are listed on the next page.