Mileage Allowances

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	40p	25p
Motorcycle	24p	24p
Bicycle	20p	20p
Income Tax and NICs are 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 on the same business trip.

Fuel-Only Mileage Rates
HMRC has announced that as of 1 July 2008, their advised fuel rates for company cars will be updated as set out in the table below. Given the current cost of fuel and if you are able to do so, HRMC is allowing the new rates to be implemented immediately.
	Petrol	Diesel	LPG
Up to 1400cc	12p	13p	7p
1401cc - 2000cc	15p	13p	9p
Over 2000cc	21p	17p	13p

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