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Mileage Allowances

For Employees Using Their Own Transport
The approved maximum tax and national insurance free mileage allowances for employees using their own transport for business are as follows:
Flat Rate	First 10,000 Miles	Miles over 10,000
Car	40p	25p
Motorcycle	24p	24p
Bicycle	20p	20p
Income Tax and NICs are due when allowances exceed these rates. Employees can claim tax relief on any shortfall. Rates of up to 5p per mile, per passenger, are also tax and NIC free when paid for the carriage of fellow employees on the same business trip.

Fuel-Only Mileage Rates
HMRC advisory mileage rates as at March 2007 for employee private mileage reimbursement or employer reimbursement of business mileage are:
	Petrol	Diesel	LPG
Up to 1400cc	9p	9p	6p
1401cc - 2000cc	11p	9p	7p
Over 2000cc	16p	12p	10p
Income tax and NICs may be due on higher rates and tax relief may be due on lower rates.

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