Mileage Allowances - New Fuel Rates
Date: Friday 6th July, 2007
Author: Roger Bell
The new rates which apply to all journeys on or after 1 August 2007 are as follows:-
|
Engine size |
Petrol |
Diesel |
LPG |
|
1400cc or less |
10p |
10p |
6p |
|
1401 to 2000cc |
13p |
10p |
8p |
|
Over 2000cc |
18p |
13p |
10p |
The rates are based on a fuel price per litre of 96.6p for petrol, 97.2p for diesel and 46.2p for LPG. For earlier rates see www.hmrc.gov.uk/cars/advisory_fuel_archive.htm.
Don’t forget however that your employees need to provide you with a VAT receipt for their fuel to enable input tax to be reclaimed.
The amount of VAT to be claimed is calculated by multiplying the above rates per business mile by the VAT fraction – 7/47ths.
Many businesses do not bother to claim but if you have a number of employees out visiting customers or travelling between branches on a regular basis the VAT can mount up to a worthwhile sum.
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