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New Business Mileage Rates from 1-12-2016

Published 02 December 2016

Tax-free rates to claim back business miles in private cars or to repay companies for private miles in company cars were increased from 1st December 2016.

Company car business mileage rates are used to claim back business mileage in employee-owned cars or to repay private mileage in company cars if fuel is provided by the company so to avoid car fuel benefit tax.

Engine size 1400cc or less: 11p – unchanged
1401cc to 2000cc: 14p – 1p increase
Over 2000cc: 21p – 1p increase

Diesel: Company car mileage rates from 01 December 2016

Engine size 1600cc or less: 9p – unchanged
1601cc to 2000cc: 11p – unchanged
Over 2000cc: 13p – unchanged

Hybrid 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.

LPG fuelled company car mileage rates:

Engine size 1400cc or less: 7p – unchanged;
1401cc to 2000cc: 9p – unchanged;
Over 2000cc: 13p – unchanged

Comments

Sheffield Haworth on 15 January 2024

This change, particularly the increase for vehicles over 1400cc, reflects an attempt to align with current vehicle operating costs. For tech recruiting companies, this can translate into more accurate compensation for employees using private cars for business purposes or a fairer cost assessment for those using company cars for private travel. It's a strategic financial update that companies need to incorporate into their expense management systems. It ensures compliance and fairness in employee reimbursement, which is critical for maintaining morale and trust within the organization. Furthermore, these updated rates can influence decisions around company car policies and choices, nudging businesses towards more efficient vehicle options. For instance, unchanged rates for smaller engine sizes and hybrid vehicles may encourage a shift towards more environmentally friendly and cost-effective transport options. This move not only aligns with broader environmental goals but can also positively impact the company's public image, especially in the tech industry, where innovation and sustainability are often key values.

Edited by Sheffield Haworth on 15/01/2024 at 11:05

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Sheffield Haworth on 20 February 2024

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