Mileage allowances

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

Fuel-only mileage rates

HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:

1 March 2013

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

Advisory fuel only mileage rates
  Rates per mile
Engine Capacity Petrol LPG
Up to 1400cc 15p 10p
1401cc - 2000cc 18p 12p
Over 2000cc 26p 18p
Engine Capacity Diesel  
1600cc or less 13p  
1601cc-2000cc 15p  
Over 2000cc 18p  

HM Revenue & Customs 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.

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