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Company Car Advisory Fuel Rates

COMPANY CAR ADVISORY FUEL RATES Car

These rates are the suggested reimbursement rates for employees’ private mileage in their company cars and are reviewed each quarter on 1 March, 1 June, 1 September and 1 December.  In line with an increase in fuel prices, the rates that apply from 1 June 2016 are shown below:

Where there has been a change, the rates that applied prior to 1 June 2016 are shown in brackets.You can use the previous rates for up to 1 month from the date the new rates apply.If you reimburse your employees the tax free amount of 45p a mile (25p after 10,000 miles) for using their own car for business purposes, then 20/120ths of the above amounts can be reclaimed as input VAT by your business. For example, a diesel-engine car emitting over 2,000cc = 12p x 1/6 = 2p input VAT a mile.

Engine size Petrol Diesel LPG
1,400 cc or less 10p 7p
1,600 cc or less 9p (8p)
1,401cc to 2,000cc 13p (12p) 9p (8p)
1,601cc to 2,000cc 10p
over 2,000cc 20p (19p) 12p (11p) 13p

Where there has been a change, the rates that applied prior to 1 June 2016 are shown in brackets.

You can use the previous rates for up to 1 month from the date the new rates apply.

If you reimburse your employees the tax free amount of 45p a mile (25p after 10,000 miles) for using their own car for business purposes, then 20/120ths of the above amounts can be reclaimed as input VAT by your business. For example, a diesel-engine car emitting over 2,000cc = 12p x 1/6 = 2p input VAT a mile.

 

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