Nelson & Co - Authorised Mileage Rates

For employees using their own transport for business	Rate per Business Mile
Cars & Vans: Annual Business mileage up to 10,000 miles	45p
Cars & Vans: Each additional mile over 10,000 miles	25p
Each passenger making the same trip *	5p
Bicycles:	20p
Motorcycles:	24p

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.