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:
|
Engine Size |
Petrol |
Diesel |
LPG |
|
1,400 cc or less |
11p (12p) |
7p (8p) |
|
|
1,600 cc or less |
9p (10p) |
||
|
1,401cc to 2,000cc |
14p |
9p |
|
|
1,601cc to 2,000cc |
11p (12p) |
||
|
over 2,000cc |
21p | 13p (14p) | 14p |
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