Kirkpatrick & Hopes - Succession Planning Accountants

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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 size

petrol

diesel

LPG

1,400 cc or less

14p

9p

1,600 cc or less

11p (12p)

1,401cc 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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