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Mileage rates

HMRC reviews the AFR every quarter basing its calculation this time on average fuel prices on one day in November from the Department of Energy and Climate Change and LPG average price quoted on the AA website.

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The new company car business mileage rates are listed below.

Petrol: Company car mileage rates from 01 March 2015

  • Engine size 1400cc or less: 11p – 2p reduction
  • 1401cc to 2000cc: 13p – 3p reduction
  • Over 2000cc: 20p – 3p reduction

Diesel: Company car mileage rates from 01 March 2015

  • Engine size 1600cc or less: 9p – 2p reduction
  • 1601cc to 2000cc: 11p – 2p reduction
  • Over 2000cc: 14p – 2p reduction

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 –1p reduction; 1401cc to 2000cc: 10p – 1p reduction (LPG); Over 2000cc: 14p – 2p reduction (LPG)

The AFR 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.

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