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New company car mileage rates announced

  • New rates came into effect on June 1
  • Rates for diesel engines up to 2,000cc cut by a penny
  • Some petrol engines also see a reduction

Company car drivers that get reimbursed for business mileage will be claiming less if they are driving a petrol or diesel car with an engine smaller than 2.0-litres from June 1.

The Advisory Fuel Rates (AFR’s) are set by the Government and reviewed four times a year. These figures are recommended as a guideline for companies to set for their drivers when claiming back business miles. Although companies do not have to follow these guidelines, most do.

Starting this month, the reimbursement rate for diesel engines up to 2,000cc is cut by a penny per mile, plus petrol engines that are larger than 1,400cc will also see a 1p reduction.

The rates for diesel engines larger than 2,000cc remain at 18p per mile and all LPG rates remain unchanged.

See the full list of new mileage rates below.

The AFR’s will be reviewed again for September 1.

Petrol

1,400cc or less - 15p

1,401-2,000cc - 17p

Over 2,000cc - 25p

Diesel

1,600cc or less - 12p

1,601-2,000cc - 14p

Over 2,000cc - 18p

LPG

1,400cc or less - 12p

1,401-2,000cc - 14p

Over 2,000cc - 18p