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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. |
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| Fuel-Only Mileage Rates |
Inland Revenue advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are: |
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Petrol |
Diesel |
LPG |
| Up to 1400cc |
10p |
9p |
6p |
| 1401cc - 2000cc |
12p |
9p |
7p |
| Over 2000cc |
14p |
12p |
9p |
| Income tax and NICs may be due on higher rates and tax relief may be due on lower rates. |
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