HMRC has announced new rates for company car drivers claiming fuel for business mileage.

The new advisory fuel rates (AFR) come into force on July 1, but the figures are announced a month in advance to allow companies time to adjust their processes. However, the new figures can be applied from now if companies wish to do so.

AFR rates from July 1, 2009

Source: HMRC (previous figures in brackets)

The new figures are based on manufacturer fuel economy claims, weighted by annual sales to businesses, and also on figures adjusted downwards by 10% to take account of real-world driving conditions, as well as latest petrol and diesel prices from the Department for Business, Enterprise and Regulatory Reform.

AFR rates are now reviewed twice a year, on January 1 and July 1. The next announcement of changes will be made at the beginning of December.
 

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