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:
- 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.
