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 2017

These mileage rates officially apply as of 1 September 2017

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 11p 7p
1401cc to 2000cc 13p 8p
Over 2000cc 21p 13p

 

Engine size Diesel
1600cc or smaller 9p
1601cc to 2000cc 11p
Over 2000cc 12p

 

1 June 2017

These mileage rates officially apply as of 1 June 2017

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

 

1 March 2017

These mileage rates officially apply as of 1 March 2017

Advisory fuel only mileage rates
  Rates per mile
Engine size Petrol LPG
1400cc or smaller 11p 7p
1401cc to 2000cc 14p 9p
Over 2000cc 22p 14p

 

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

 

1 December 2016

These mileage rates officially apply as of 1 December 2016

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 13p

 

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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