Mileage Rates

Advisory Fuel Rate

The current rates are shown below and should be used when calculating VAT on the fuel element of business mileage claims or for repayment of personal mileage on company cars.

Fuel rates from 1st December 2018

Engine Size	Petrol	Diesel	LPG
1400cc or smaller	12p		8p
1401cc to 2000cc	15p		10p
1600cc or smaller		10p
1601cc to 2000cc		12p
Over 2000cc	22p	14p	15p

Previous fuel rates from 1st September to 30 November 2018

Engine Size	Petrol	Diesel	LPG
1400cc or smaller	12p		7p
1401cc to 2000cc	15p		9p
1600cc or smaller		10p
1601cc to 2000cc		12p
Over 2000cc	22p	13p	13p

Mileage Allowance Payments

Mileage allowance payments are paid to employees for using their own vehicle for business journeys.

As long as the payment is within the HMRC approved mileage allowance payment threshold the payment is not subject to tax. If you pay less than the approved mileage allowance payment your employee can claim the difference from HMRC. If you pay more the amount above the approved payment will be taxable.

Car up to 10,000 miles per annum - 45p per mile
Car over 10,000 miles per annum - 25p per mile
Motorcyle - 24p per mile
Bicycle - 20p per mile
Passenger - 5p per mile