Travel - mileage and fuel allowances

Approved mileage rates
From 2002/03 to 2010/11	First 10,000 business miles in the tax year	Each business mile over 10,000 in the tax year
Cars and vans	40p	25p
Motor cycles	24p	24p
Bicycles	20p	20p

Approved mileage rates
From 2011/12	First 10,000 business miles in the tax year	Each business mile over 10,000 in the tax year
Cars and vans	45p	25p
Motor cycles	24p	24p
Bicycles	20p	20p

Passenger payments – cars and vans

5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all.

Company Cars

The charge is based on the price of the car for tax purposes (normally the list price) and accessories multiplied by an appropriate percentage based on the level of CO2 emissions and the fuel the car uses. There is a ready-reckoner of appropriate percentages for petrol-powered cars and summaries of adjustments to those percentages for years from 2002/03 to 2005/06 and for years from 2006/07 onwards.

Company Vans

The rules on which the charge is based were changed from 2005/06. The charges are:

This is a simple sample table
Type	years to 2006/07	years from 2007/08
van less than 4 years old at the end of the tax year	£500	£3,000
all other vans	£350	£3,000

Fuel charges – company cars and vans

Cars: to calculate the benefit charge on free or subsidised fuel for private use, the appropriate percentage used in calculating car benefit is multiplied by a set figure for the tax year. The set figure is £14,400 from 2003/04 to 2007/08 and £16,900 for 2008/09 onwards.

Vans: the fuel charge began in 2005-06 but only has practical effect from 2007-08, when the benefit charge for a year is £500.

Advisory fuel rates – company cars

You can find the current rates, plus an explanation of how the rates can be used and earlier rates, elsewhere on the website.

Company car and car fuel calculator – company cars

You can calculate car and car fuel benefits by using our interactive calculator.

Further information

Further information is available on these topics:

This page was last updated in September 2008