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 March 2014

These mileage rates came into force officially on 1 March 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 17p

Engine size Diesel
1600cc or smaller 12p
1601cc to 2000cc 14p
Bigger than 2000cc 17p

 

1 December 2013

These mileage rates came into force officially on 1 December 2013.

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 smaller 12p
1601cc to 2000cc 14p
Bigger than 2000cc 17p

1 September 2013

These mileage rates came into force officially on 1 September 2013.

Advisory fuel only mileage rates
  Rates per mile
Engine Capacity Petrol LPG
Up to 1400cc 15p 10p
1401cc - 2000cc 18p 11p
Over 2000cc 26p 16p
Engine Capacity Diesel  
1600cc or less 12p  
1601cc-2000cc 15p  
Over 2000cc 18p  

1 June 2013

These mileage rates came into force officially on 1 June 2013.

Advisory fuel only mileage rates
  Rates per mile
Engine Capacity Petrol LPG
Up to 1400cc 15p 10p
1401cc - 2000cc 17p 12p
Over 2000cc 25p 18p
Engine Capacity Diesel  
1600cc or less 12p  
1601cc-2000cc 14p  
Over 2000cc 18p  

HMRC 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