HM Revenue & Customs advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:
1 January 2008 to 31 May 2008
Baseline fuel mileage rates
Rates per mile
Engine Capacity
Petrol
Diesel
Gas
Up to 1400cc
11p
11p
11p
1401 - 2000c
13p
11p
8p
Over 2000cc
19p
14p
11p
From 1 June 2008
Baseline fuel mileage rates
Rates per mile
Engine Capacity
Petrol
Diesel
Gas
Up to 1400cc
12p
13p
7p
1401 - 2000cc
15p
13p
8p
Over 2000cc
21p
17p
13p
HM Revenue & Customs have announced that rates will now be reviewed biannually and generally any changes will take effect on 1 January and 1 July.
For employees using their own transport
The approved maximum tax and national insurance free mileage allowances for employees using their own transport for business are as follows:
Flat Rate
First 10000 Miles
Miles over 10000
Car or van
40p
25p
Motorcycle
24p
24p
Bicycle
20p
20p
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.