Mileage Allowances
| For Employees Using Their Own Transport | ||
|---|---|---|
| The approved maximum tax free mileage allowances for employees using their own transport for business are as follows: | ||
| Flat Rate | First 10,000 Miles | Thereafter |
| Car / Van | 40p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
| Income Tax is due when allowances exceed these rates. Employees can claim tax relief on any shortfall. | ||
The approved national insurance free mileage allowances for employees using their own transport for business are as follows.
| Vehicle Type | Rate per mile |
|---|---|
| Car / Van | 40p |
| Motorcycle | 24p |
| Bicycle | 20p |
Class 1 NICs are due on any excess of the total amount paid in the pay period over the NICs-free amount for the number of business miles travelled. There is no relief for payments less than the NICs-free amount.
Rates of up to 5p per mile, per passenger, are also tax and NIC free when paid for the carriage of fellow employees on the same business trip.
| Fuel-Only Mileage Rates | HMRC advisory mileage rates at the time of the Budget for employee private mileage reimbursement or employer reimbursement of business mileage in company cars are: | ||
|---|---|---|---|
| Petrol | Diesel | LPG | |
| Up to 1400cc | 12p | 11p | 8p |
| 1401cc - 2000cc | 15p | 11p | 10p |
| Over 2000cc | 21p | 16p | 14p |