Fuel-only mileage rates
HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:
From 1 July 2009
These mileage rates come into force officially on 1 July 2009. HMRC is content for the new (lower) rates to apply immediately where employers are able and wish to do so.
Baseline fuel mileage rates
| Rates per mile | |||
| Engine Capacity | Petrol | Diesel | Gas |
| Up to 1400cc | 10p | 10p | 7p |
| 1401 – 2000cc | 12p | 10p | 8p |
| Over 2000cc | 18p | 13p | 12p |
From 1 January 2009
Baseline fuel mileage rates
| Rates per mile | |||
| Engine Capacity | Petrol | Diesel | Gas |
| Up to 1400cc | 10p | 11p | 7p |
| 1401 – 2000cc | 12p | 11p | 9p |
| Over 2000cc | 17p | 14p | 12p |
HM Revenue & Customs have announced that rates will now be reviewed biannually and generally any changes will take effect on 1 January and 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 the HMRC have indicated in a response to a Parliamentary enquiry that it is not intended that these rates will change.
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 in a car or van on the same business trip.
