These changes only affect the fuel only rates, the business mileage rates are unchanged
Tax: rates per business mile
| First 10,000 miles | Above 10,000 miles | |
|---|---|---|
| Cars and vans | 45p (40p before 2011 to 2012) | 25p |
| Motorcycles | 24p | 24p |
| Bikes | 20p | 20p |
Its the Approved Mileage Rates that keep changing
From 1 September 2021
You can use the previous rates for up to 1 month from the date the new rates apply.
| Engine size | Petrol – rate per mile | LPG – rate per mile |
|---|---|---|
| 1400cc or less | 12 pence | 7 pence |
| 1401cc to 2000cc | 14 pence | 8 pence |
| Over 2000cc | 20 pence | 12 pence |
| Engine size | Diesel – rate per mile |
|---|---|
| 1600cc or less | 10 pence |
| 1601cc to 2000cc | 12 pence |
| Over 2000cc | 15 pence |
From 1 June 2021 to 31 August 2021
| Engine size | Petrol – rate per mile | LPG – rate per mile |
|---|---|---|
| 1400cc or less | 11 pence | 8 pence |
| 1401cc to 2000cc | 13 pence | 9 pence |
| Over 2000cc | 19 pence | 14 pence |
| Engine size | Diesel – rate per mile |
|---|---|
| 1600cc or less | 9 pence |
| 1601cc to 2000cc | 11 pence |
| Over 2000cc | 13 pence |
1 March 2021 to 31 May 2021
| Engine size | Petrol – rate per mile | LPG – rate per mile |
|---|---|---|
| 1400cc or less | 10 pence | 7 pence |
| 1401cc to 2000cc | 12 pence | 8 pence |
| Over 2000cc | 18 pence | 12 pence |
| Engine size | Diesel – rate per mile |
|---|---|
| 1600cc or less | 9 pence |
| 1601cc to 2000cc | 11 pence |
| Over 2000cc | 12 pence |
1 December 2020 to 28 February 2021
| Engine size | Petrol – rate per mile | LPG – rate per mile |
|---|---|---|
| 1400cc or less | 10 pence | 7 pence |
| 1401cc to 2000cc | 11 pence | 8 pence |
| Over 2000cc | 17 pence | 12 pence |
| Engine size | Diesel – rate per mile |
|---|---|
| 1600cc or less | 8 pence |
| 1601cc to 2000cc | 10 pence |
| Over 2000cc | 12 pence |
For hybrid cars you must use the petrol or diesel rate which may differ significantly from the actual fuel costs. The advisory electricity rate for fully electric cars is 4 pence per mile.
Employees should carefully consider whether it is advantageous having private fuel provided for their company car. Remember that the P11d benefit for having private fuel provided for a company car in 2021/22 is £24,600 multiplied by the CO2 emissions percentage for that vehicle.
For example, a director driving a Mercedes Benz E200 saloon company car (CO2 emissions 169g per km) would be assessed on 37% = £9,102 for 2020/21. If they are a higher rate taxpayer that would mean £3,641 tax. That is an awful lot of private fuel!
