Mileage Rates

Advisory Fuel Rate

The current rates are shown below and should be used when calculating repayment of personal mileage in company cars or to pay employees for business travel in company cars.

Fuel rates from 1st March to 31st May 2024

Engine Size Petrol Diesel LPG
1400cc or smaller 13p   11p
1401cc to 2000cc 15p   13p
1600cc or smaller   12p  
1601cc to 2000cc   14p  
Over 2000cc 24p 19p 21p

The advisory rate for fully electric cars is 10p per mile from 1st September 2023.  Hybrid cars are treated as either petrol or diesel.

Mileage Allowance Payments

Mileage allowance payments are paid to employees for using their own vehicle for business journeys.

As long as the payment is within the HMRC approved mileage allowance payment threshold the payment is not subject to tax.  If you pay less than the approved mileage allowance payment your employee can claim the difference from HMRC.  If you pay more the amount above the approved payment will be taxable.

  • Car up to 10,000 miles per annum - 45p per mile
  • Car over 10,000 miles per annum - 25p per mile
  • Motorcyle - 24p per mile
  • Bicycle - 20p per mile
  • Passenger - 5p per mile

Previous Rates

Previous fuel rates from 1st December 2023 to 29th February 2024.  You can find earlier rates and further information on HMRC website.

Engine Size Petrol Diesel LPG
1400cc or smaller 14p   10p
1401cc to 2000cc 16p   12p
1600cc or smaller   13p  
1601cc to 2000cc   15p  
Over 2000cc 26p 20p 18p

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Unit 21 Portway Business Centre
Old Sarum, Salisbury

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