• Introduction
• Income Tax
• Capital Gains Tax
• Corporation Tax
• Main Capital Allowances
• Value Added Tax
• Inheritance Tax
• Vehicle Benefits
• Mileage Allowances
• NI Contributions
• Key Dates & Deadlines
• Pension Premiums
• Charitable Giving
• Savings & Investments
• Some Useful Rates
• Stamp Taxes
• Proposed Changes for 2011-12 and Beyond

Mileage Allowances

For Employees Using Their Own Transport
The approved maximum tax free mileage allowances for employees using their own transport for business are as follows:
Flat Rate	First 10,000 Miles	Thereafter
Car / Van	40p	25p
Motorcycle	24p	24p
Bicycle	20p	20p
Income Tax is due when allowances exceed these rates. Employees can claim tax relief on any shortfall.

The approved national insurance free mileage allowances for employees using their own transport for business are as follows.

Vehicle Type	Rate per mile
Car / Van	40p
Motorcycle	24p
Bicycle	20p

 

Class 1 NICs are due on any excess of the total amount paid in the pay period over the NICs-free amount for the number of business miles travelled. There is no relief for payments less than the NICs-free amount.

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.

Fuel-Only Mileage Rates
HMRC advisory mileage rates at the time of the Budget for employee private mileage reimbursement or employer reimbursement of business mileage in company cars are:
	Petrol	Diesel	LPG
Up to 1400cc	12p	11p	8p
1401cc - 2000cc	15p	11p	10p
Over 2000cc	21p	16p	14p