Reimbursing Fuel Expenses for Company Car Using HMRC Advisory Fuel Rates (AFR)

HMRC Advisory Fuel Rates (AFR) are intended for employees in the UK who drive a company car. Use the rates when you are employed and you either:

• Pay for fuel yourself, and your employer reimburses you for fuel costs of business mileage.
• Need to repay your employer the cost of fuel used for private travel.

You must not use AFR rates in any other circumstances.

About this program

This program calculates mileage expenses for either #business or #personal trips based on HMRC Advisory Fuel Rates (AFR). Use this program if you are driving a company car and need to settle fuel costs with your employer. If you are paying for fuel, select the #business mileage rate in order to claim fuel costs for business mileage back from your employer. If your employer is paying for fuel, choose the #personal mileage rate to repay fuel costs for your personal rides.

How to use this program

Select the HMRC Actual Expenses program if you are employed and drive a company car. Trips logged by the app must be classified as either #business or #personal. You cannot log or claim additional vehicle expenses with this program.

How this program works

When you select this program within Psngr app:

▪︎ Trips are logged (automatically) and you must classify them as either #business or #personal. Mileage rates in this program use HMRC Advisory Fuel Rates (AFR) to calculate mileage expenses. The total mileage and expenses appear in your reports.

▪︎ Expenses for the vehicle cannot be logged when using this program.

▪︎ Reports include sections for “Trips” and “Vehicles” section, each with a list of the items logged in the report period and a summary.

▪︎ Report Rules - by default, reports generated by this program are not restricted to a single vehicle. If you use more than one company car you may include all vehicles in a single report in order to aggregate your fuel expense claims.

Conditions

• This program is intended for employees. You cannot use this program if you are self-employed.
• You cannot log vehicle expenses when using this program. This program is restricted to mileage expenses, which are calculated based on AFR.
• AFR mileage rates can be used only in two case:
  • The employer reimburses the employee for business travel in their company cars
  • The employee repays the cost of fuel used for private travel.
• You must not use AFR rates in any other circumstances.

Disclaimer

Psngr does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, nor should be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors.

Source: HMRC Advisory Fuel Rates