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Online Resources > Tax Rates & Allowances >
Tax Free Mileage Allowances
| First 10,000 business miles in the tax year | Each mile over 10,000 miles in the tax year | Extra passenger making same trip | |
|---|---|---|---|
Cars
and vans |
40p | 25p | 5p |
Motor cycles |
24p | 24p | N/A |
Bicycles |
20p | 20p | N/A |
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. |
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