Mileage allowances
Note: HMRC approved mileage allowance for employees using their own car is shown in the table below.
Fuel-only mileage rates
HMRC advisory mileage rates for employee private mileage reimbursement or employer reimbursement of business mileage are:
1 March 2021
These mileage rates officially apply as of 1 December 2020
| Advisory fuel only mileage rates | ||
| Rates per mile | ||
| Engine size | Petrol | LPG |
| 1400cc or smaller | 10p | 7p |
| 1401cc to 2000cc | 12p | 8p |
| Over 2000cc | 18p | 12p |
| Engine size | Diesel |
| 1600cc or smaller | 9p |
| 1601cc to 2000cc | 11p |
| Over 2000cc | 12p |
1 December 2020
These mileage rates officially apply as of 1 December 2020
| Advisory fuel only mileage rates | ||
| Rates per mile | ||
| Engine size | Petrol | LPG |
| 1400cc or smaller | 10p | 7p |
| 1401cc to 2000cc | 11p | 8p |
| Over 2000cc | 17p | 12p |
| Engine size | Diesel |
| 1600cc or smaller | 8p |
| 1601cc to 2000cc | 10p |
| Over 2000cc | 12p |
1 September 2020
These mileage rates officially apply as of 1 September 2020
| Advisory fuel only mileage rates | ||
| Rates per mile | ||
| Engine size | Petrol | LPG |
| 1400cc or smaller | 10p | 7p |
| 1401cc to 2000cc | 12p | 8p |
| Over 2000cc | 17p | 12p |
| Engine size | Diesel |
| 1600cc or smaller | 8p |
| 1601cc to 2000cc | 10p |
| Over 2000cc | 12p |
1 June 2020
These mileage rates officially apply as of 1 June 2020
| Advisory fuel only mileage rates | ||
| Rates per mile | ||
| Engine size | Petrol | LPG |
| 1400cc or smaller | 10p | 6p |
| 1401cc to 2000cc | 12p | 8p |
| Over 2000cc | 17p | 11p |
| Engine size | Diesel |
| 1600cc or smaller | 8p |
| 1601cc to 2000cc | 9p |
| Over 2000cc | 12p |
Electric car advisory rate
The Advisory Electricity Rate for a fully electric car is 4p per mile. Electricity is not considered a fuel for the purpose of the car fuel benefit.
For employees using their own transport
| Flat rate | First 10,000 Miles | Miles over 10,000 |
| Car or van | 45p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
Employees can claim tax relief on any shortfall paid in the rates contained within in the table above.
Rates of up to 5p per mile, per passenger, are also tax and national insurance free when paid for the carriage of fellow employees in a car or van on the same business trip.