The latest HMRC’s approved company car mileage rates have been announced.
Company car business mileage rates are used to claim back business mileage in company cars; or to repay private mileage if all fuel is provided by the company – this avoids car fuel benefit tax.
The new company car business mileage rates, known as the HMRC advisory fuel rates (AFRs), commence from 01 March, 2018.
You can continue to claim the old rates for up to one month following the commencement date of the new rates.
If you drive a hybrid company car, then the business mileage rates reflect the appropriate petrol or diesel AFRs depending on whether you have a petrol or a diesel hybrid.
The updated company car business mileage rates are listed below
Petrol: Company car mileage rates from 01 March 2018
- Engine size 1400cc or less: 11p – unchanged
- 1401cc to 2000cc: 14p – unchanged
- Over 2000cc: 22p – up 1p
Diesel: Company car mileage rates from 01 March 2018
- Engine size 1600cc or less: 9p – unchanged
- 1601cc to 2000cc: 11p – unchanged
- Over 2000cc: 13p –unchanged
Hybrid powered 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.
LPG fuelled company car mileage rates from 01 March 2018
- Engine size 1400cc or less: 7p – unchanged;
- 1401cc to 2000cc: 8p – 1p decrease;
- Over 2000cc: 13p – 1p decrease
HMRC reviews the company car business mileage rates every quarter.
The current figures are calculated using the latest petrol and diesel prices from Department for Business, Energy & Industrial Strategy (13 February 2018), LPG (UK Average) from the Automobile Association (AA) website (January 2018).