Mileage allowances
Note: HMRC approved mileage allowance for employees using their own car is 45p.
Fuel-only mileage rates
HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:
1 March 2013
These mileage rates came into force officially on 1 March 2013.
| Advisory fuel only mileage rates | ||
|---|---|---|
| Rates per mile | ||
| Engine Capacity | Petrol | LPG |
| Up to 1400cc | 15p | 10p |
| 1401cc - 2000cc | 18p | 12p |
| Over 2000cc | 26p | 18p |
| Engine Capacity | Diesel | |
| 1600cc or less | 13p | |
| 1601cc-2000cc | 15p | |
| Over 2000cc | 18p | |
HM Revenue & Customs review rates quarterly and any changes will take effect on 1 January, 1 March, 1 June and 1 December. This area of our site will be updated around the beginning of June and December about one month before any change takes effect.
For employees using their own transport
The approved maximum tax and national insurance free mileage allowances for employees using their own transport for business are as follows:
| Flat rate | First 10,000 Miles | Miles over 10,000 |
| Car or van | 45p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
Income Tax and NICs may both be due when allowances exceed these rates. Employees can claim tax relief on any shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NIC free when paid for the carriage of fellow employees in a car or van on the same business trip.
| Green travel guide |
| For 'green' travel arrangements, bus, cycle and other schemes; click here to visit our green travel guide |
