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Company car advisory fuel rates

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:

Engine sizePetrolDieselLPG
1,400 cc or less14p9p
1,600 cc or less11p (12p)
1,401 cc to 2,000 cc16p11p
1,601 cc to 2,000 cc13p (14p)
Over 2,000 cc24p17p16p

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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Cruse & Burke,
73 Park Lane,

Tel: 020 8686 8876


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