Mileage allowances

Note: HMRC approved mileage allowance for employees using their own car is 45p.

Fuel-only mileage rates

HMRC advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:

1 June 2015

These mileage rates came into force officially on 1 June 2015.

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 12p 8p
1401cc to 2000cc 12p 9p
Over 2000cc 21p 14p

 

Engine size Diesel
1600cc or smaller 10p
1601cc to 2000cc 12p
Over 2000cc 14p

1 March 2015

These mileage rates came into force officially on 1 March 2015.

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 11p 8p
1401cc to 2000cc 13p 10p
Over 2000cc 20p 14p

 

Engine size Diesel
1600cc or smaller 9p
1601cc to 2000cc 11p
Over 2000cc 14p

1 December 2014

These mileage rates came into force officially on 1 December 2014.

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 13p 9p
1401cc to 2000cc 16p 11p
Bigger than 2000cc 23p 16p

 

Engine size Diesel
1600cc or less 11p
1601cc to 2000cc 13p
Over 2000cc 16p

1 September 2014

These mileage rates came into force officially on 1 September 2014.

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 14p 9p
1401cc to 2000cc 16p 11p
Bigger than 2000cc 24p 16p

 

Engine size Diesel
1600cc or less 11p
1601cc to 2000cc 13p
Over 2000cc 17p

 

 

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