HMRC Advisory fuel rates from 1 June 2014

HM Revenue & Customs (HMRC) have published the latest HMRC Advisory Fuel Rates relating to mileage payments for business travel in company cars. The new rates are:

Engine Size Petrol Diesel LPG
1400cc or less 14p (14p) 12p (12p) 09p ( 09p)
1401cc to 1600cc 16p (16p) 14p (14p) 11p ( 11p)
1601cc to 2000cc 16p (16p) 14p (14p) 11p (11p)
over 2000cc 24p (24p) 17p (17p) 16p (17p)

The above rates per mile are also used when calculating the VAT recoverable on the Approved Mileage Rates shown below for employees who use their own car on business:

2014-2015 First 10,000 business miles in the tax year Each mile over 10,000 miles in the tax year
Cars and vans 45p 25p
Motor cycles 24p 24p
Bicycles 20p 20p

Advisory fuel rates can be used to calculate:

  1. Reimbursement to employees of fuel used for business travel in a company car;
  2. Repayment by an employee for fuel used for personal travel in a company car; and
  3. Calculating reclaimable input VAT on business mileage claims.

If you need any help of advise on any of the above please contact us today.