UPDATED FUEL RATES AND MILEAGE PAYMENTS

The advisory fuel rates should only be used in the following circumstances:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel for private travel

Advisory fuel rates from the 1 June 2015 are (per business mile):

Hybrid cars are treated as either petrol or diesel cars for this purpose.

These are not to be confused with the mileage payments for business travel.

The current rate per business mile for a car is as follows:

• For Tax purposes-45pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile.
• For National Insurance Contribution (NIC’s) purposes- 45 pence for all business miles.
• The current rate per business mile for a motorcycle is 24 pence for both tax and NIC’s purposes and for all business miles.

If you travel ?as a result of running your business (other than home to work) and:

• Are unsure on what you can claim
• Are considering your options regarding the company purchasing a vehicle
• Want to understand the rules around company car benefits in kind
• Are unsure whether to lease or buy a vehicle

Or anything else associated with business travel. Please contact business works so that we can ensure the advice you are given is specific to your circumstances.