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Mileage allowances
Note: Increase in 40p mileage allowance to 45p for employees using their own transport.
Fuel-only mileage rates
HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:
31 August 2011
These mileage rates come into force officially on 1 September 2011
| Advisory fuel only mileage rates | ||
|---|---|---|
| Rates per mile | ||
| Engine Capacity | Petrol | LPG |
| Up to 1400cc | 15p | 11p |
| 1401cc - 2000cc | 18p | 12p |
| Over 2000cc | 26p | 18p |
| Engine Capacity | Diesel | |
| 1600cc or less | 12p | |
| 1601cc-2000cc | 15p | |
| Over 2000cc | 18p | |
27 May 2011
These mileage rates came into force officially on 1 June 2011
| Advisory fuel only mileage rates | ||
|---|---|---|
| Rates per mile | ||
| Engine Capacity | Petrol | LPG |
| Up to 1400cc | 15p | 11p |
| 1401cc - 2000cc | 18p | 13p |
| Over 2000cc | 26p | 18p |
| Engine Capacity | Diesel | |
| 1600cc or less | 12p | |
| 1601cc-2000cc | 15p | |
| Over 2000cc | 18p | |
1 March 2011
These mileage rates came into force officially on 1 March 2011
| Advisory fuel only mileage rates | |||
|---|---|---|---|
| Rates per mile | |||
| Engine Capacity | Petrol | Diesel | LPG |
| Up to 1400cc | 14p | 13p | 10p |
| 1401cc - 2000cc | 16p | 13p | 12p |
| Over 2000cc | 23p | 16p | 17p |
HM Revenue & Customs has announced that rates will now be reviewed bi-annually and any changes will take effect on 1 January and 1 June. This area of our site will normally be updated around the beginning of June and December about one month before any change takes effect. If however there are significant fuel cost fluctuations, then rates may be changed accordingly as was the case on 1 March 2011.
HM Revenue & Customs review rates biannually and generally any changes will take effect on 1 January and 1 June or 1 July. 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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