Company Car Advisory Fuel Rates

These rates are the suggested reimbursement rates for employees’ private mileage in their company cars and are reviewed each quarter on 1 March, 1 June, 1 September and 1 December. The rates that apply from 1 September 2015 are shown below, with the previous quarter’s rates shown in brackets, if changed:

1,400 cc to less = 11p(12p) petrol/ 7p(8p) LPG

1,600 cc to less = 9P(10P) diesel

1,401 cc to 2,000 cc = 14p petrol/ 9p LPG

1,601 cc to 2,000 cc = 11p(12p) diesel

over 2,000 cc = 21p petrol/ 13p(14p) diesel/ 14p LPG

Remember also that 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 then 20/120ths of the above amounts can be reclaimed as input VAT by your business. For example a petrol engine car over 2,000 cc = 21p x 1/6 = 3.5p VAT a mile