Mileage Rates
Business mileage rates
Private cars.
The approved mileage rates for drivers of private cars claiming business mileage from their employers are as follows. This is quoted as pence per mile.
| Engine Size | Up to 10,000 miles | Excess over 10,000 miles |
|---|---|---|
| All Cars | 45p | 25p |
Company cars.
Changes to the advisory business mileage rates are announced from time to time. The current rates as follows, quoted as pence per mile.
| Engine Size | Petrol | Diesel | Hybrid |
|---|---|---|---|
| 1,400cc or less | 14p | 13p | 10p |
| 1,401cc to 2,000cc | 16p | 13p | 12p |
| Over 2000cc | 23p | 16p | 17p |
The advisory rates above can be applied as a tax-free maximum rate, for employees claiming for fuel used on business journeys, and for employees reimbursing their employers with the cost of fuel used for private journeys. HM Revenue and Customs will consider claims for a higher maximum rate, if it can be demonstrated that it is necessary for an employee to use a car with higher than average fuel costs.
The rates are reviewed twice annually on 1st June and 1st December. HM Revenue and Customs will consider changing the advisory fuel rates if fuel rates fluctuate by 5% from the published rate when each review is made and they consider the price change will be sustained.