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Mileage Allowances

Fuel-only mileage rates

HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:

From 1 June 2008

	Rates per mile
Baseline fuel mileage rates
Engine Capacity	Petrol	Diesel	Gas
Up to 1400cc	12p	13p	7p
1401 - 2000cc	15p	13p	9p
Over 2000cc	21p	17p	13p

1 January 2008 to 31 May 2008

	Rates per mile
Baseline fuel mileage rates
Engine Capacity	Petrol	Diesel	Gas
Up to 1400cc	11p	11p	7p
1401 - 2000cc	13p	11p	8p
Over 2000cc	19p	14p	11p

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

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.

Green Travel Guide

For 'green' travel arrangements, bus, cycle and other schemes;
click here to visit our green travel guide

2008/09 Rates and Allowances

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