Mileage allowances
Changes to the HM Revenue & Customs business mileage rates are announced from time to time.
The current effective rates from 1 January 2008 are:
| Vehicle |
First 10,000 miles |
Thereafter |
| Car / Van |
40p |
25p |
| Motorcycle |
24p |
24p |
| Bicycle |
20p |
20p |
| Car – fuel only advisory rates |
| Engine capacity |
Petrol |
Diesel |
LPG |
| up to 1400cc |
11p |
11p |
7p |
| 1401 - 2000cc |
13p |
11p |
8p |
| Over 2000cc |
19p |
14p |
11p |
The HM Revenue & Customs advisory rates can be applied as a tax-free maximum rate for employees claiming for petrol used on business journeys and for employees reimbursing their employers with the cost of petrol used for private journeys. HM Revenue & Customs will consider claims for a higher maximum rate, if it can be demonstrated that it is necessary for an employee to use a car with higher than average fuel costs.
