skip to navigationskip to main content

Tax Rates & Allowances

Back to Tax Rates & Allowances

Tax Free Mileage Allowances

First 10,000 business miles in the tax yearEach mile over 10,000 miles in the tax yearExtra passenger making same trip
Cars and vans45p25p5p
Motorcycles24p24p-
Bicycles20p20p-

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.