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 / 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 on the same business trip.

Fuel-Only Mileage Rates
HMRC advisory mileage rates as at January 2008 for employee private mileage reimbursement or employer reimbursement of business mileage are:
	Petrol	Diesel	LPG
Up to 1400cc	11p	11p	7p
1401cc - 2000cc	13p	11p	8p
Over 2000cc	19p	14p	11p

2008/09 Tax Library