Fuel-only mileage rates
HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:
1 June 2010
These mileage rates came into force officially on 1 June 2010.
| Baseline fuel mileage rates | |||
| Rates per mile | |||
|---|---|---|---|
| Engine Capacity | Petrol | Diesel | LPG |
| Up to 1400cc | 12p | 11p | 8p |
| 1401 - 2000cc | 15p | 11p | 10p |
| Over 2000cc | 21p | 16p | 14p |
1 December 2009
The following mileage rates came into force officially on 1 December 2009.
| Baseline fuel mileage rates | |||
| Rates per mile | |||
|---|---|---|---|
| Engine Capacity | Petrol | Diesel | LPG |
| Up to 1400cc | 11p | 11p | 7p |
| 1401 - 2000cc | 14p | 11p | 8p |
| Over 2000cc | 20p | 14p | 12p |
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:
| Flat rate | First 10,000 Miles | Miles over 10,000 |
| Car or van | 40p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
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.
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