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. In line with an increase in fuel prices, the rates that apply from 1 June 2016 are shown below:
|1,400 cc or less||10p||7p|
|1,600 cc or less||9p (8p)|
|1,401cc to 2,000cc||13p (12p)||9p (8p)|
|1,601cc to 2,000cc||10p|
|over 2,000cc||20p (19p)||12p (11p)||13p|
Where there has been a change, the rates that applied prior to 1 June 2016 are shown in brackets.
You can use the previous rates for up to 1 month from the date the new rates apply.
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 diesel-engine car emitting over 2,000cc = 12p x 1/6 = 2p input VAT a mile.