Share this content

Advisory fuel rates for vans

Advisory fuel rates for vans

Didn't find your answer?

Should the mileage amount claimed for a company van reflect the advisory fuel rates or not?  The link attached - seems to suggest advisory rates do not apply, although this is talking about dispensations quotes "HMRC interprets all such dispensations (but not any in relation to vans, to which the advisory fuel rates do not apply)."  There seems to be some conflicting advice out there. Clearly it is beneficial to claim the 45p rather than the 15p or whichever category the van falls into.

Replies (3)

Please login or register to join the discussion.

By eastangliantaxadvisor
05th Mar 2013 20:25

The 15 p per mile relates only to fuel - and HMRC appear to consider that this should only be used for cars.


HMRC employer's manual says"

Advisory fuel ratesThese rates (see EIM25655) cannot be used in relation to vans as this is not one of the uses specified on the HMRC website. This is because they were not calculated in relation to vans but from the average fuel consumption for the most popular fleet cars"


Hoever, the 45p is to cover fuel and running costs. This DOES apply to vans, as is set out in the statue book.


229(1)  No liability to income tax arises in respect of approved mileage allowance payments for a vehicle to which this Chapter applies (see section 235)

235(1)  This Chapter applies to cars, vans, motor cycles and cycles




Thanks (0)
By AJBetts77
06th Mar 2013 10:33


Thanks for your comments.  So you would advise the business to pay for 45p a mile for the business mileage that the employee does, whilst paying for the road tax and insurance etc, and not have to declare any van benefit on the P11d, because the van is used for commuting and business only.

Thanks (0)
By M Shapland
06th Mar 2013 12:01

VAn and Fuel rates

You can't pay an employee the approved mileage allowance (45p per mile) for using his employer's  Van.


If the employee pays for the fuel himself and does not have a Benefit in kind as there is no private usage of vehicle apart from commuting, then he should obtain a VAT receipt when he fills up and obtain a refund from his employer by completing a normal expense claim form.


If the VAN belongs to the employee and he uses it for business travel then yes he can get 45p per business miles (up to 10,000 miles) and 25p per additional business miles from his employer. Again he needs to complete an expense claim form.

Thanks (0)
Share this content

Related posts