mileage – Blue Orchid Corporation Ltd http://www.bo-accounting.co.uk Accounting and Taxation Services - London Tue, 11 Aug 2020 10:22:22 +0000 en-GB hourly 1 https://wordpress.org/?v=5.8.1 http://www.bo-accounting.co.uk/wp-content/uploads/2020/08/cropped-blue-orchid-logo-32x32.jpg mileage – Blue Orchid Corporation Ltd http://www.bo-accounting.co.uk 32 32 Mileage Allowances http://www.bo-accounting.co.uk/informations/mileage-allowances/ Tue, 11 Aug 2020 08:32:15 +0000 http://www.bo-accounting.co.uk/?p=115 It is quite normal practice for employees to be reimbursed at a reasonable mileage rate for business use of their own vehicles. The income tax and national insurance contributions (NICs) position is as follows:

A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows:
Cars and vans:
on the first 10,000 miles in the tax year
on each additional mile above this		 45p per mile
25p per mile
Motorcycles 24p per mile
Bicycles 20p per mile

It is no longer possible to make a claim for tax relief based on the actual receipted bills, nor claim capital allowances or interest on loans related to car purchases.

Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.

Rates of up to 5p per mile, per passenger, are also tax- and NICs- free when paid for the carriage of fellow employees on the same business trip. From 6 April 2011 this is extended to carriage of volunteers.

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