Home > > 2008/09 Rates and Allowances > Mileage Allowances
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
| Baseline fuel mileage rates | |||
| Rates per mile | |||
|---|---|---|---|
| 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
| Baseline fuel mileage rates | |||
| Rates per mile | |||
|---|---|---|---|
| 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.
2008/09 Rates and Allowances
Main taxes
- Key dates and deadlines
- Income tax
- Corporation tax
- Inheritance tax
- Capital gains tax
- Value added tax
- NI contributions
- Residential property letting taxation
- Main capital allowances
- Business deductions
- Penalties for late returns