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:
|1,400 cc or less||14p||9p|
|1,600 cc or less||11p (12p)|
|1,401 cc to 2,000 cc||16p||11p|
|1,601 cc to 2,000 cc||13p (14p)|
|Over 2,000 cc||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.