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 | 45p | 25p | 5p |
Motorcycles | 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.