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 September 2016

These mileage rates officially apply as of 1 September 2016

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 11p 7p
1401cc to 2000cc 13p 9p
Over 2000cc 20p 13p

 

Engine size Diesel
1600cc or smaller 9p
1601cc to 2000cc 10p
Over 2000cc 13p

 

1 June 2016 

These mileage rates officially apply as of 1 June 2016 

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 10p 7p
1401cc to 2000cc 13p 9p
Over 2000cc 20p 13p

 

Engine size Diesel
1600cc or smaller 9p
1601cc to 2000cc 10p
Over 2000cc 12p

 

1 March 2016

These mileage rates came into force officially on 1 March 2016

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 10p 7p
1401cc to 2000cc 12p 8p
Over 2000cc 19p 13p

 

Engine size Diesel
1600cc or smaller 8p
1601cc to 2000cc 10p
Over 2000cc 11p

1 December 2015

These mileage rates came into force officially on 1 December 2015

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 11p 7p
1401cc to 2000cc 13p 9p
Over 2000cc 20p 13p

 

Engine size Diesel
1600cc or smaller 9p
1601cc to 2000cc 11p
Over 2000cc 13p

1 September 2015

These mileage rates came into force officially on 1 September 2015

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 11p 7p
1401cc to 2000cc 14p 9p
Over 2000cc 21p 14p

 

Engine size Diesel
1600cc or smaller 9p
1601cc to 2000cc 11p
Over 2000cc 13p
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

 

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.

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