Company car fuel tax rebate
A mileage tax rebate can be claimed if you have to pay for the fuel used on work related journeys.
Mileage tax relief is normally claimed back when using your own car but a claim can be made if you have a company car as well.
The important elements if you have a company car is that you have to pay for the fuel yourself and you are not reimbursed in full by your employer.
HMRC have different mileage rates for using your own car and a company car. The company car fuel rates are called advisory fuel rates with AMAP rates being used if you use your own car.
Electric cars are classed as being more environmentally sensitive and the government offers tax advantages because of this. If you run an electric car a rate called the advisory electricity rate is used.
Hybrid cars are not treated differently and you should use the advisory fuel rate given to the fuel type your car uses.
What are the advisory fuel rates?
The advisory fuel rates for company cars are less than the AMAP rates because you are not using your own car. Advisory fuel rates are put into different categories based on the engine size and fuel type of your car.
Advisory fuel rates for company car mileage claim
| Engine size | Petrol | Diesel | LPG | Electric |
| 1,400cc or less | 14p | 10p | 8p | |
| 1,600cc or less | 14p | 8p | ||
| 1,401cc – 2,000cc | 17p | 12p | 8p | |
| 1,601cc to 2,000cc | 17p | 8p | ||
| Over 2,000cc. | 26p | 22p | 18p | 8p |
The advisory fuel rates provided are correct at the time of writing. HMRC normally reviews the advisory fuel rates quarterly on 1 March, 1 June, 1 September, and 1 December.
Pool cars fuel tax rebate
If you have to use a pool car for work and you pay for the fuel cost for work mileage you can make a mileage tax rebate claim.
This is only possible if you are not reimbursed in full for the cost of the fuel by your employer.
Electric company car fuel benefit
Electric company cars use an advisory electricity rate which is specifically for electric company cars. The rate is set at .8p per mile from the 1 December 2022.
If you are claiming a mileage tax rebate for using your own electric car for work you should use the standard AMAP rates of .45p per mile and .25p per mile.
How do I claim a company car mileage tax rebate?
To make a claim for company car fuel tax rebate you will need records of the cost incurred ideally fuel receipts.
These can be kept digitally along a mileage record showing the places you have visited with dates. Some evidence to show that you have not been reimbursed by your employer for the fuel may also be required.
The form you need to submit to HMRC is called a P87 expenses of employment or a self assessment tax return.
Both the P87 and self assessment tax return can be submitted online which is normally the quickest and most secure way to submit your claim to the tax office.
