Company car advisory fuel rates

News: October 2014

Company car advisory fuel rates

The suggested reimbursement rates for employees’ private mileage in their company cars are reviewed each quarter on 1 March, 1 June, 1 September and 1 December. The following rates apply from 1 September 2014, with the previous quarter’s rates shown in brackets:

The letters are written to attract attention, with the words “You need to act now!” stamped in red across the front, but they have not been copied to us as your agents. Please contact us if you receive such a letter, as we will get in touch with HMRC on your behalf. If HMRC had cross-checked with the partner’s tax return, these letters would have been unnecessary.

engine size petrol diesel LPG
1,400 cc or less 14p 9p
1,600 cc or less 14p 9p
1,401cc to 2,000cc 11p (12p)
1,601cc to 2,000cc 16p 11p
1,601cc to 2,000cc 13p (14p)
over 2,000cc 24p 17p 16p

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, 20/120ths of the above amounts can be reclaimed as input VAT by your business e.g. a petrol engine car over 2,000 cc = 24p x 1/6 = 4p VAT a mile.

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