Using your private vehicle for business journeys

Employers can pay employees a fixed rate per mile to cover the costs of using their own vehicles on company business.

The present agreed rates per mile are:

  • Cars and vans – 45p per mile for the first 10,000 miles and then 25p per mile.
  • Motorcycles – 24p per mile.
  • Bikes – 20p per mile.

What if you are paid more than these rates?

If your employer pays you more than these rates the excess paid over the agreed rates will be taxed as a benefit in kind.

Employers would need to declare these benefits at the tax year end on form P11D.

What if you are paid less than these rates?

If employers pay less than these rates employees can claim for the shortfall as an expense against their taxable income.

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