Mileage & Fuel allowance
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Mileage Allowance Payments (MAPs)
Mileage Allowance Payments (MAPs) are what you pay your employee for using their own vehicle for business journeys.
|Vehicle||First 10,000 miles||Above 10,000 miles|
|Cars and vans||45p/mile||25p/mile|
If you pay above the approved limits, you must report on form P11D and add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal.
If you pay below the approved limits, you will not have to report to HMRC or pay tax, but your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount.
Advisory fuel rates (AFR)
These rates only apply to employees using a company car.
Use the rates when you either:
- reimburse employees for business travel in their company cars
- need employees to repay the cost of fuel used for private travel
|Engine size||Petrol - rate per mile||LPG - rate per mile|
|1400cc or less||10p||7p|
|1401cc to 2000cc||12p||8p|
|Engine size||Diesel - rate per mile|
|1600cc or less||8p|
|1601cc to 2000cc||10p|
HMRC review rates quarterly on 1 March, 1 June, 1 September and 1 December. You can use the previous rates for up to 1 month from the date the new rates apply.
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