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.


see: Professional Indemnity Insurance (PI Insurance) UK

Fuel-Only Mileage Rates
Inland Revenue advisory mileage rates as at 22 March2011for employee private mileage reimbursement or employer reimbursement of business mileage are:
  Petrol Diesel LPG
Up to 1400cc 10p 9p 7p
1401cc - 2000cc 12p 9p 8p
Over 2000cc 16p 13p 10p
Income tax and NICs may be due on higher rates and tax relief may be due on lower rates.


 

 

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