Mileage allowance


Written by Ray Coman


    Per mile
Private cars and vans     First 10,000 miles in the tax year 45p
  Additional miles 25p
  Each qualifying passenger 5p
Motorcycle   24p
Bicycle 20p


The mileage allowance determines the amount that an employee or director may deduct from taxable income for the use of their own car, motor bike or bicycle for business journeys. If motor costs have been reimbursed by the employer, then any excess reimbursements over the above rates are taxable, and any shortfall is tax deductible. As any exception, any shortfall in reimbursement of passenger payments is not deductible.


An employee or deducting mileage allowance from their taxable income may not also deduct cost other motor cost, such as the cost of purchasing the vehicle, interest on a car loan, MOT, servicing, tax or fuel costs. Motor costs which are not related to miles travelled such as parking, toll charges and the congestion charge are tax deductible in addition to the mileage allowance.


#2 Ray Coman 2015-11-06 11:53

The mileage allowance limit is per fiscal year (to 5 April.)
#1 Graham Woodger 2015-11-04 15:08
Is the 10,000 mile limit applicable to my accounting year or the financial year?

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