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.

VehicleFirst 10,000 milesAbove 10,000 miles
Cars and vans 45p/mile 25p/mile
Motorcycles 24p/mile 24p/mile
Bicycles 20p/mile 20p/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 sizePetrol - rate per mileLPG - rate per mile
1400cc or less 10p 7p
1401cc to 2000cc 12p 8p
Over 2000cc 17p 12p
Engine sizeDiesel - rate per mile
1600cc or less 8p
1601cc to 2000cc 10p
Over 2000cc 12p

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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Corporation Tax Rates

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