Authorised Mileage Rates

Cars up to 10,000 miles - 45p 
over 10,000 miles - 25p
Bicycles: 20p
Motorcycles: 24p

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. The 10,000 mile limit relates to a given tax year (i.e. 6th April to 5th April).  Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

Fuel Only Rates

Engine size Petrol LPG Engine Size Diesel
1400cc or less 11p 7p 1600cc or less 9p
1401 to 2000cc 13p 8p 1601-2000cc 11p
Over 2000cc 21p 13p Over 2000 cc 12p

These rates are effective for business journeys from 1st September 2017.  These are the rates to be used where a company car is used, but fuel is paid for by the employee.  HM Revenue & Customs will also accept the figures in the table for VAT purposes though employers will need to retain receipts in line with current legislation, as explained in an article in our news section. These rates are reviewed quarterly with changes effective from 1st March, 1st June, 1st September and 1st December, with a one month grace period each time the rates change, during which time either the new or the old rates may be used.  Please see the news section of our website for updated rates and also for historic rates.
To find out how Chapman Robinson & Moore can help your business either call 01865 379272, or click here to arrange a free Confidential Business Analysis.