New Mileage Rates

Included in the recent budget was an increase in the amount that can be claimed tax free for business mileage. The new rates are 45 pence per mile for the first 10,000 miles and 25 pence for any miles over 10,000 miles.

I have set out below details of the new rates together with the fuel element for each mile claimed, and also details of the amounts of VAT that can be claimed for each mile.

When claiming VAT it is important to keep petrol receipts for the amount of fuel claimed.

Petrol Engine

Claim per mile

Fuel Element

VAT per mile

1400cc or less

45p or 25p

14p

2.33p

1401cc to 2000cc

45p or 25p

16p

2.67p

Over 2000cc

45p or 25p

23p

3.83p

Diesel Engine

Claim per mile

Fuel Element

VAT per mile

1400cc or less

45p or 25p

13p

2.17p

1401cc to 2000cc

45p or 25p

13p

2.17p

Over 2000cc

45p or 25p

16p

2.67p

LPG Engine

Claim per mile

Fuel Element

VAT per mile

1400cc or less

45p or 25p

10p

1.67p

1401cc to 2000cc

45p or 25p

12p

2.00p

Over 2000cc

45p or 25p

17p

2.83p