These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. 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
Diesel
LPG
1400cc or less
10p
11p
7p
1401 to 2000cc
12p
11p
9p
Over 2000cc
27p
14p
12p
These rates are effective for business journeys from 1st January 2009. These are the rates to be used where a company car is used, but fuel is paid for by the employee. 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.
