Mileage allowances

By Tolley
VAT_tax_img

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Mileage allowances
  • Approved mileage rates for company cars used on company business
  • Mileage rates for private cars used on company business

This guidance note provides details of the approved mileage rates and the fuel element that businesses can reclaim VAT on if they pay employees a mileage allowance when a car is used on company business.

The mileage rates provided below are from the HMRC website. However, HMRC will accept mileage rates produced by the main motoring organisations..

Approved mileage rates for company cars used on company business

HMRC has introduced revised advisory fuel rates with effect from 1 December 2012. Details of the current rates can be found below.

Please see the link to the GOV.UK website for the Current Advisory Fuel Rates .

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