Glossary · UK
What is Advisory Fuel Rate (AFR)?
HMRC-set per-mile fuel reimbursement rates for company car users, updated quarterly, used to reimburse employees for business mileage or for employees to repay private fuel costs.
Full Definition
Advisory Fuel Rates (AFRs) are published by HMRC quarterly (effective 1 March, 1 June, 1 September, and 1 December) and set the approved per-mile rate at which employers can reimburse employees who use company cars for business travel, free of income tax and NI. The rate varies by engine size and fuel type. For Q2 2026 (from 1 March 2026) the rates include: petrol up to 1400cc 13p/mile, 1401-2000cc 15p/mile, over 2000cc 23p/mile; diesel up to 1600cc 12p/mile, 1601-2000cc 14p/mile, over 2000cc 17p/mile; electric vehicles 9p/mile. AFRs are distinct from Approved Mileage Allowance Payments (AMAPs), which apply to employees using their own vehicles.