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Company Car Users that pay for their own fuel

October 2005

If you have the use of a company car but pay for your own fuel, the rates per mile advised by the tax office, increased from the 1 July 2005.

You can now claim the following rates per mile with the blessing of HMRC.

1400cc or less - petrol 10p, diesel 9p, LPG 7p.
1401cc to 2000cc - petrol 12p, diesel 9p, LPG 8p.
Over 2000cc's - petrol 16p, diesel 13p, LPG 10p.

Don't forget that if your employer does not reimburse you for business related fuel costs, you can make a claim on your tax return.

These rates are also accepted by HMRC for VAT purposes. Employers can still recover the deemed VAT input tax included in the petrol related mileage rate.