Mileage & Fuel allowance

Like this page? Share it with your friends

Facebook
Twitter
LinkedIn
WhatsApp
Email
Print

 

Mileage and Fuel Allowance

If you are looking at mileage allowances for business use of employees’ own vehicles, and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances to help you plan tax efficiently.

Approved Mileage Rates:

From 2011/12First 10,000 business miles in the tax yearEach business mile over 10,000 in the tax year
Cars and vans45p25p
Motorcycles24p24p
Bicycles20p20p

Passenger Payments Cars and Vans

5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all.

 

Advisory Fuel Rates:

Petrol

Engine sizeMean MPGApplied MPGFuel Price (per litre)Fuel Price(per gallon)Rate per mileAdvisory fuel rate
Up to 140054.252.7165.1 pence750.5 pence 14.2 pence14 pence
1401 to 200046.144.9165.1 pence750.5 pence16.7 pence17 pence
Over 200030.830.0165.1 pence750.5 pence25 pence25 pence

Diesel

Engine sizeMean MPGApplied MPGFuel Price (per litre)Fuel Price(per gallon)Rate per mileAdvisory fuel rate
Up to 160065.463.6179.7 pence816.8 pence 12.8 pence13 pence
1601 to 200052.951.3179.7 pence816.8 pence15.9 pence16 pence
Over 200043.542.1179.7 pence816.8 pence19.4 pence19 pence

LPG

Engine sizeMean MPGApplied MPGFuel Price (per litre)Fuel Price(per gallon)Rate per mileAdvisory fuel rate
Up to 140043.342.286.8 pence394.6 pence 9.4 pence9 pence
1401 to 200036.935.986.8 pence394.6 pence11 pence11 pence
Over 200024.724.086.8 pence394.6 pence16.4 pence16 pence

The advisory electricity rate for fully electric cars is 5 pence per mile. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates. The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.

From 1 June 2022

You can use the previous rates for up to 1 month from the date the new rates apply.
Engine sizepetrol - rate per milelpg - rate per mile
1400cc or less14 pence9 pence
1401cc to 2000cc17 pence11 pence
Over 2000cc25 pence16 pence
Engine sizeDiesel - rate per mile
1600cc or less13 pence
1601cc to 2000cc16 pence
Over 2000cc19 pence

From 1 March 2022

You can use the previous rates for up to 1 month from the date the new rates apply.
Engine sizepetrol - rate per milelpg - rate per mile
1400cc or less13 pence8 pence
1401cc to 2000cc15 pence10 pence
Over 2000cc22 pence15 pence
Engine sizeDiesel - rate per mile
1600cc or less11 pence
1601cc to 2000cc13 pence
Over 2000cc16 pence

Disclaimer : This website and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information without this website.

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

Related pages:

Get further information from the following pages;

Explore our services

Knowledge & resources

Tax rates card

Budget

Tax tables

Who we help?

Related Blogs:

Get further information from the following blogs;

Blogs

News & recent developments

Facebook
Twitter
LinkedIn
WhatsApp
Email
Print

Subscribe to our newsletter

Get in touch

Book a free call at time of your convenience

Install Naail & Co app

Install Naail & Co App on your Smartphone or Tablet. Tax calculators, business mileage tracker, deadlines & thresholds, business & tax news and much more!