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:
|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|
Advisory fuel rates can be used to calculate:
- Reimbursement to employees of fuel used for business travel in a company car;
- Repayment by an employee for fuel used for personal travel in a company car; and
- Calculating reclaimable input VAT on business mileage claims.
If you need any help of advise on any of the above please contact us today.