Mileage & Fuel allowance

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 2011/12	First 10,000 business miles in the tax year	Each business mile over 10,000 in the tax year
Cars and vans	45p	25p
Motorcycles	24p	24p
Bicycles	20p	20p

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 size	Mean MPG	Applied MPG	Fuel Price (per litre)	Fuel Price(per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	54.2	52.7	165.1 pence	750.5 pence	14.2 pence	14 pence
1401 to 2000	46.1	44.9	165.1 pence	750.5 pence	16.7 pence	17 pence
Over 2000	30.8	30.0	165.1 pence	750.5 pence	25 pence	25 pence

Diesel

Engine size	Mean MPG	Applied MPG	Fuel Price (per litre)	Fuel Price(per gallon)	Rate per mile	Advisory fuel rate
Up to 1600	65.4	63.6	179.7 pence	816.8 pence	12.8 pence	13 pence
1601 to 2000	52.9	51.3	179.7 pence	816.8 pence	15.9 pence	16 pence
Over 2000	43.5	42.1	179.7 pence	816.8 pence	19.4 pence	19 pence

LPG

Engine size	Mean MPG	Applied MPG	Fuel Price (per litre)	Fuel Price(per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	43.3	42.2	86.8 pence	394.6 pence	9.4 pence	9 pence
1401 to 2000	36.9	35.9	86.8 pence	394.6 pence	11 pence	11 pence
Over 2000	24.7	24.0	86.8 pence	394.6 pence	16.4 pence	16 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 size	petrol - rate per mile	lpg - rate per mile
1400cc or less	14 pence	9 pence
1401cc to 2000cc	17 pence	11 pence
Over 2000cc	25 pence	16 pence

Engine size	Diesel - rate per mile
1600cc or less	13 pence
1601cc to 2000cc	16 pence
Over 2000cc	19 pence

From 1 March 2022

You can use the previous rates for up to 1 month from the date the new rates apply.

Engine size	petrol - rate per mile	lpg - rate per mile
1400cc or less	13 pence	8 pence
1401cc to 2000cc	15 pence	10 pence
Over 2000cc	22 pence	15 pence

Engine size	Diesel - rate per mile
1600cc or less	11 pence
1601cc to 2000cc	13 pence
Over 2000cc	16 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.

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