SEARCH, INDEX, UPDATES, CONTENTS, INFORMATION, MILEAGE RATES (FUEL ONLY)
On 28 January 2002, and effective from that date, the Inland Revenue released information on its website about Advisory Fuel Rates for Company Cars. This is a slightly misleading heading as it relates to all business cars, and not just those owned by Limited Companies.
This is particularly helpful where employees are not provided with private fuel for a firm's car but are reimbursed in respect of business mileage, or are required to repay the cost of private fuel.
New rates are introduced for all journeys after 1 January 2008 as
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 11p | 11p | 7p |
| 1401cc to 2000cc | 13p | 11p (same as above) | 8p |
| Over 2000cc | 19p | 14p | 11p |
Previous rates applied for all journeys from 1 August 2007 to 31 December 2007
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 10p | 10p | 6p |
| 1401cc to 2000cc | 13p | 10p (same as above) | 8p |
| Over 2000cc | 18p | 13p | 10p |
Previous rates were introduced for all journeys after 1 February 2007 (but see transitional rates below) as
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 9p | 9p | 6p |
| 1401cc to 2000cc | 11p | 9p (same as above) | 7p |
| Over 2000cc | 16p | 12p | 10p |
Previous rates were introduced for all journeys after 1 July 2006 (transitionally, could be used until 28 February 2007) and were
| Engine Size | Petrol | Diesel | LPG |
| 1400cc or less | 11p | 10p | 7p (unchanged) |
| 1401cc to 2000cc | 13p | 10p (same as above) | 8p (unchanged) |
| Over 2000cc | 18p | 14p | 11p |
The original rates were calculated when the price of unleaded petrol was 77p, diesel 78p and LPG 38p per litre. The 2004/05 update was based on LPG at 41p per litre. The Inland Revenue do not intend to revise these figures unless there is a major change in the price of fuel.
The previous rates per business mile were -
| Engine Size | Petrol | Diesel | LPG | LPG |
| (all years) | (all years) | (to 5 April 04) | (from 6 April 04) | |
| 1400cc or less | 10p | 9p | 6p | 7p |
| 1401cc to 2000cc | 12p | 9p (same as above) | 7p | 8p |
| Over 2000cc | 16p (14p to 1 July 05) | 13p (12p to 1 July 05) | 9p | 10p |
Employees and employers can calculate actual costs if they wish to, but will need to demonstrate the basis of their figures.
The Inland Revenue website also states "Customs and Excise will also accept the figures in the table for VAT purposes".
See also -
Additional Passenger Rate - a new
tax free payment from 6 April 2002.
Mileage Rates (RAMR) - Revenue Authorised Mileage Rates
for employee owned cars.
Mileage Record - print this
handy form to record your business mileage
VAT in Mileage Allowances - can be
reclaimed by some VAT registered businesses.
Business Cars - the rules on tax relief
Car Policy - is a company or firms car and fuel
worthwhile?
Car Fuel Benefit - changes from 5 April 2003.
Travel and Subsistence - new rules on
commuting since 6 April 1998 - are you complying?
Reminder - disclaimer applies. Please feedback your comments. This page was last modified 4 December 2007.