Mileage allowances

Fuel-only mileage rates

HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:

1 December 2009

The following mileage rates come into force officially on 1 December 2009.

Baseline fuel mileage rates
	Rates per mile
Engine Capacity	Petrol	Diesel	Gas
Up to 1400cc	11p	11p	7p
1401 - 2000cc	14p	11p	8p
Over 2000cc	20p	14p	12p

From 1 July 2009

These mileage rates came into force on 1 July 2009.

Baseline fuel mileage rates
	Rates per mile
Engine Capacity	Petrol	Diesel	Gas
Up to 1400cc	10p	10p	7p
1401 - 2000cc	12p	10p	8p
Over 2000cc	18p	13p	12p

Will these rates change?

We understand the HM Revenue & Customs have indicated in a response to a Parliamentary enquiry that it is not intended that these rates will change.

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.

Green travel guide

For 'green' travel arrangements, bus, cycle and other schemes; click here to visit our green travel guide