New June advisory mileage rates now in force

Jun 6, 2012

HMRC has updated its advisory mileage rates that allow businesses to reimburse employees for work related travel, or when employees are required to repay the cost of fuel used for private travel, in company cars.

Businesses are able to reclaim the VAT element on fuel mileage allowances providing they are close to HMRC’s own set fuel mileage allowance rates below.

Advisory fuel rates from 1 June 2012
  Rates per mile
Engine Capacity Petrol LPG
Up to 1400cc 15p 11p
1401cc – 2000cc 18p 13p
Over 2000cc 26p 19p
Engine Capacity Diesel  
1600cc or less 12p  
1601cc-2000cc 15p  
Over 2000cc 18p  

The rates are reviewed four times during the tax year any changes come into effect at the beginning of each quarter on 1 March, 1 June, 1 August and 1 December.

Employers may continue to use either the previous or new current rates for one month after the date of change.

Please contact us if you need help calculating mileage allowances.