The suggested reimbursement rates for employees’ private mileage in their company cars are reviewed each quarter on 1 March, 1 June, 1 September and 1 December. The following rates apply from 1 September 2014, with the previous quarter’s rates shown in brackets:
| engine size | petrol | diesel | LPG |
| 1,400 cc or less | 14p | 9p | |
| 1,600 cc or less | 11p (12p) | ||
| 1,401cc to 2,000cc | 16p | 11p | |
| 1,601cc to 2,000cc | 13p (14p) | ||
| over 2,000cc | 24p | 17p | 16p |
If you reimburse your employees the tax free amount of 45p a mile (25p after 10,000 miles) for using their own car for business purposes, 20/120ths of the above amounts can be reclaimed as input VAT by your business e.g. a petrol engine car over 2,000 cc = 24p x 1/6 = 4p VAT a mile.
