HMRC Approved Mileage Rates


Below are the HMRC approved mileage allowance rates which apply from April 2011 onwards.

From April 2011 Motor cycles Cars & Vans
First 10,000 business miles in the tax year 24p 45p
Each additional business mile in the tax year 24p 25p

The rates shown above are the amounts your employer can reimburse your for business mileage without you incurring any additional tax.

If your employer pays you more than the approved mileage rate

If receive more than the amounts shown in the table, a taxable benefit arises and you will be taxed on any payment you receive above the approved mileage rates. Many employers will use the approved rates as a guide to determine how much to reimburse their employees for mileage, so it would be uncommon for employers to pay above this rate.

If you receive less than the approved mileage rate

The HMRC approved rates only determine how much tax relief you can obtain on business mileage. Whether or not your employer reimburses you is down to their internal policies. Where you are not reimbursed for business mileage, or receive less than the approved rates, you can claim mileage tax relief on the difference from HMRC.

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