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.
