CHEAPER prices at UK pumps have given HMRC the excuse to cut company car business mileage rates by 1p for larger petrol and LPG engine categories.
Diesels, which took the hit in the September company car business mileage rates, known as advisory fuel rates (AFR) review, are left unchanged amid the emissions review, as are the smallest petrol and LPG powered company cars in the company car business mileage rates applicable from 1 December.
Company car business mileage rates are used to claim back business mileage in company cars or to repay private mileage if fuel is provided by the company so to avoid car fuel benefit tax.
HMRC reviews the company car business mileage rates every quarter basing its calculation this time on average fuel prices on one day in November from the Department of Energy and Climate Change and LPG average price quoted on the AA website.
The new company car business mileage rates are listed below
Petrol: Company car mileage rates from 01 December 2015
- Engine size 1400cc or less: 11p – unchanged
- 1401cc to 2000cc: 13p – 1p decrease
- Over 2000cc: 20p – 1p decrease
Diesel: Company car mileage rates from 01 December 2015
- Engine size 1600cc or less: 9p – unchanged
- 1601cc to 2000cc: 11p – unchanged
- Over 2000cc: 13p – unchanged
Hybrid fuelled company car mileage rates
- Drivers of petrol/electric hybrid company cars should use the petrol rates.
- Drivers of diesel/electric hybrid cars should use the diesel rates.
LPG fuelled company car mileage rates:
- Engine size 1400cc or less: 7p – unchanged;
- 1401cc to 2000cc: 9p – unchanged (LPG);
- Over 2000cc: 13p – 1p decrease (LPG)
The Advisory Fuel Rate company car business mileage rates are to be used by company car drivers and should should not be confused with Approved Mileage Allowance Payments, known as AMAPs, because these are the tax-free pence-per-mile rates applicable only when drivers use their private cars for business purposes.
