Mileage allowances

Fuel-only mileage rates

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

1 December 2009

The following mileage rates came into force officially on 1 December 2009.

From 1 July 2009

These mileage rates come into force on 1 July 2009.

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:

Will these rates change?

We understand that it is not HM Revenue & Customs intention to change these mileage rates.

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.