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

These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. If employees receive less than this statutory rate, tax relief can be claimed on the difference.

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. This now also covers volunteers who drive for hospital car services etc., even though they are not strictly employees
.