Company car business mileage rate changes (pence per mile)


Leaasepoint news


Mileage rates


HMRC has relented a little with its latest company car mileage rates, as fuel pump prices have stabilised, raising the allowances by 1p in most petrol and diesel engines categories.

However, LPG users are the worst off with medium sized engines of between 1,401 and 2,000cc actually dropping by 1p in the rates, known as Advisory Fuel Rates (AFR).

These new Advisory Fuel Rates are applicable from 1 June.

At the same time, drivers of LPG cars in both other engine groups of under 1,400cc and over 2,000cc remaining unchanged.

The only other drivers to lose out on rate relief are those using cars with diesel engines over 2,000cc which also do not change.

Advisory Fuel 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 Advisory Fuel Rates every quarter basing its calculation this time on average fuel prices on one day in February from the Department of Energy and Climate Change and LPG average price quoted on the AA website in January.

The new company car business mileage rates are listed below

Petrol: Company car mileage rates from 01 June 2015

  • Engine size 1400cc or less: 12p – 1p increase
  • 1401cc to 2000cc: 14p – 1p increase
  • Over 2000cc: 21p – 1p increase

Diesel: Company car mileage rates from 01 June 2015

  • Engine size 1600cc or less: 10p – 1p increase
  • 1601cc to 2000cc: 12p – 1p increase
  • Over 2000cc: 14p – unchanged

Hybrid and LPG-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.
  • Drivers of LPG company cars should use the following rates: Engine size 1400cc or less: 8p – unchanged; 1401cc to 2000cc: 9p – 1p reduction (LPG); Over 2000cc: 14p – unchanged (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.

If you have any queries regarding your fleet, your drivers, or anything else vehicular, contact Leasepoint on 01270 620760 or via email

Posted by LPN on June 4th 2015


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