Advisory Fuel Rate for Company Cars
These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 September 2016. Where there has been a change the previous rate is shown in brackets.
You can continue to use the previous rates for up to 1 month from the date the new rates apply.
VAT Implications of Employee Mileage ClaimsNote that where employers reimburse their employees 45p per mile for using their own cars they are able to reclaim input VAT based on the amounts shown in the table.
In the case of a 1600cc diesel car that would be 1.5 pence per mile. (9p x 20/120). Such a claim needs to be supported by a receipt from the filling station.
Engine Size | Petrol | Diesel | LPG |
1400cc or less | 10p | 7p | |
1600cc or less | 9p (8p) | ||
1401cc to 2000cc | 13p (12p) | 9p (8p) | |
1601 to 2000cc | 10p | ||
Over 2000cc | 20p (19p) | 12p (11p) | 13p |
Engine Size | Petrol | Diesel | LPG |
1400cc or less | 10p | 7p |