Advisory fuel rates (AFRs) are recommended reimbursement figures for drivers reclaiming business mileage, usually for those in company vehicles. The advisory fuel rate is updated by HMRC based on fuel prices every quarter, and publish revised figures if required in late February, May, August and November each year
Why This Matters:
For Employers:
Staying compliant with HMRC’s AFRs is crucial to avoid any errors. Accurate reimbursement ensures that employees are fairly compensated for their business travel expenses without overburdening the company’s finances.
For Employees:
Understanding the revised rates helps employees accurately claim their fuel expenses and ensures they are not out-of-pocket for business travel. It also clarifies their obligations when it comes to repaying costs for private travel.
Next Steps:
Review and Adjust Policies: Employers should review their current reimbursement policies and adjust them according to the new AFRs.
Communicate with Employees: Ensure that all employees are aware of the new rates and understand how to claim their expenses correctly.
Stay Informed: Since these rates are reviewed quarterly, it is important to stay updated on any further changes to avoid non-compliance.
Updated Advisory Fuel Rates from 1 December 2024
The advisory fuel rates are worked out from the fuel prices in these tables.
HB Accountants are here to help you and your business. We keep businesses and invidiuals informed, keep you and or your business compliant. If you would like to speak to us about how we can help you or your business, get in touch with us on 01992 444466..
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any error.
You may not know that local accountants HB Accountants, based in Hoddesdon in Hertfordshire and on the Essex border, was originally a London accountancy practice. We moved out to this lovely market town over 40 years ago and are so happy that some of our original London-based businesses are still our clients.
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HB Accountants is the trading name of HBAS Limited, a company registered in England with registration number 5085258. The registered office of HBAS Limited is Plumpton House, Plumpton Road, Hoddesdon, Hertfordshire EN11 0LB, England. Registered for VAT number 866062806.
You may not know that local accountants HB Accountants, based in Hoddesdon in Hertfordshire and on the Essex border, was originally a London accountancy practice. We moved out to this lovely market town over 40 years ago and are so happy that some of our original London-based businesses are still our clients.
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A critical part of running a small business is managing your accounting. Not only do you need to manage the bookkeeping – the recording and organising of your financial data such as invoicing, expenses, payments and payroll – you also need to manage your accounts – the presentation and interpretation of that financial data including … Continue reading
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