For employees using their own transport for business.
From 2002/03
Rate per Business Mile
Cars & Vans: Annual Business mileage up to 10,000 miles
40p
Cars & Vans: Each additional mile over 10,000 miles
25p
Each passenger making the same trip *
5p
Bicycles:
20p
Motorcycles:
24p

* 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, or nothing at all.

These rates represent the maximum tax free mileage allowance 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.