If you’re an employer and your staff use their private vehicles for business travel, you can offer them a mileage allowance. This isn’t an obligation but it really is a fantastic perk that employees always appreciate. 
The amount that you offer is up to you, with HMRC’s recommended rate being the following: 
First 10,000 miles 
Cars and vans = 45p 
Motorcycles = 24p 
Bikes = 20p 
Above 10,000 miles 
Cars and vans = 25p 
Motorcycles = 24p 
Bikes = 20p 
Employees that are reimbursed at the approved rates or under don’t have to report it to HMRC. Anything above the current rate will need to be reported by the company via a P11D form, plus the amount needs to be added to the employee’s wages so that they can pay tax on it. To keep things simple, we suggest sticking to the approved rates listed above. 
Needless to say, you have to maintain records of any mileage allowance you pay out. This should be in the form of each employee keeping an individual mileage log, outlining details of their business travel for each calendar month. 

Need help with tax? 

We provide the highest standard of tax management to businesses across the UK. For more information, please call our Yorkshire office on 01482 235575, our London office on 0207 885 0605, or fill in the contact form below. 
Tagged as: Tax & Expenses
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