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Mileage Allowances
| 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 |
40p |
25p |
| Motorcycle |
24p |
24p |
| Bicycle |
20p |
20p |
Income Tax and NICs are 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
on the same business trip. |
|
| Fuel-Only Mileage Rates |
| Inland Revenue advisory mileage
rates for employee private mileage reimbursement or employer
reimbursement of business mileage are: |
| |
Petrol |
Diesel |
LPG |
| Up to 1400cc |
10p |
9p |
7p |
| 1401cc - 2000cc |
12p |
9p |
8p |
| Over 2000cc |
14p |
12p |
10p |
| Income tax and NICs may be
due on higher rates and tax relief may be due on lower
rates. |
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