Vehicle Mileage Allowances Explained

Mileage Allowances: HMRC approved mileage rates from 6th April 2011
HMRC approved mileage allowance payments (AMAPs) can be paid tax and National Insurance free to employees using their own cars, motorcycles or bicycles for business as shown in the table below.
Vehicle type
Amount per mile
Cars and vans, mileage up to 10,000
45p
Cars and vans, mileage over 10,000 (for NI the rate is 45p for all business miles)
25p
Motorcycles, all mileage
24p
Bicycles, all mileage
20p
Passenger (car or van, per passenger), all mileage
5p

We have created several posts surrounding Tax Rates for further reading here.

Mileage Allowances: Advisory Fuel Rates

Where an employee pays for all the fuel when driving a company car, the employer may reimburse them tax free for the cost of business mileage traveled at the rates shown in the table below.
Similarly, where an employer has paid for all the fuel for a company car, the employee can avoid being subjected to a fuel scale charge (see above) by reimbursing the employer using the same rates.
The rates below apply from 1st June 2018, but may be amended at any time, but usually quarterly, by HMRC to reflect shifting fuel prices. The previous quarter’s figure are shown in brackets.
Engine size
Petrol
LPG
Up to 1,400cc
11p (11p)
7p (7p)
1,401 – 2,000cc
14p (14p)
9p (8p)
Over 2,000cc
22p (22p)
14p (13p)
Engine size
Diesel
Up to 1,600cc
10p (9p)
1,601 – 2,000cc
11p (11p)
Over 2,000cc
13p (13p)

For more information, we provide a Business Consultation to ensure our clients benefits from tax planning and accounting matters.

There is a Travel mileage and fuel rates and allowances guide here.

For any assistance contact Companies999, we will be happy to help you!

Leave a Reply

Your e-mail address will not be published. Required fields are marked *