|
|
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 advisory
mileage rates as at March 2007 for employee private
mileage reimbursement or employer reimbursement of
business mileage are: |
| |
Petrol |
Diesel |
LPG |
|
Up to 1400cc |
9p |
9p |
6p |
|
1401cc - 2000cc |
11p |
9p |
7p |
|
Over 2000cc |
16p |
12p |
10p |
|
Income tax and NICs may be
due on higher rates and tax relief may be due on lower
rates. |
|
|
|
