Company Owned Vehicles
HM Revenue and Customs have announced revised tax free advisory fuel rates from 1 December 2017 which may be paid for business journeys in a car owned by the business. Rates for the previous quarter are shown in brackets.
|1,400 cc or less||11p (11p)||7p (7p)|
|1,600 cc or less||9p (9p)|
|1,401 cc to 2,000 cc||14p (13p)||9p (8p)|
|1,601 cc to 2,000 cc||11p (11p)|
|Over 2,000 cc||21p (21p)||13p (12p)||14p (13p)|
Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for up to 1 month from the date the new rates apply.
These rates may be used in the following circumstances:-
- Where employers reimburse for business travel in company cars.
- Where employers provide fuel for company cars but employees are required to reimburse the cost of fuel for private use.
Input VAT claims on mileage paid for company cars or employee owned vehicles
HM Revenue & Customs will accept the above figures for claiming input VAT on fuel for company cars, provided a VAT receipt is available to cover the cost of the fuel. They will also accept use of the above rates by the employer when calculating input VAT on the fuel element for employees using their own vehicles and claiming mileage under the tax free approved mileage rates for business travel of 45p for the first 10,000 miles and 25p thereafter.
If you have any queries regarding the above or require any further information please do not hesitate to contact us.